Corporate PPA vs Utility PPA
Bilateral corporate PPA (CPPA) vs traditional utility-route PPA. Why corporates increasingly bypass the supplier — and when not to.
Quick answer: Corporate PPA (CPPA) or Utility-route PPA?
Corporate PPA (CPPA) vs Utility-route PPA: CPPA gives you the cheapest tariff for investment-grade off-takers; utility PPA suits anyone who needs the supplier's balancing and credit support.
Side-by-side comparison
| Corporate PPA (CPPA) | Utility-route PPA | |
|---|---|---|
| Counterparty | Direct generator (CPPA) | Electricity supplier |
| Tariff (year 1) | £55-£75/MWh (5.5-7.5 p/kWh) | 11-20 p/kWh |
| System size minimum | 10MWp+ typical | 50kWp+ |
| Off-taker covenant requirement | Investment-grade typically | Wider range accepted |
| Balancing risk | Sometimes off-taker carried | Supplier carries |
| REGO transfer | Direct from generator | Via supplier |
| Best for | FTSE-listed corporates, treasury sophistication | Most UK commercial off-takers |
Our verdict
CPPA gives you the cheapest tariff for investment-grade off-takers; utility PPA suits anyone who needs the supplier's balancing and credit support.
Who you actually contract with
The dividing line is the counterparty. A corporate PPA (CPPA) is a bilateral deal struck directly with the generator — you cut the supplier out of the middle. A utility-route PPA keeps your electricity supplier as the counterparty, buying the power on your behalf and handling the plumbing around it. That choice sets the price, the risk you carry, and whether the deal is even open to you.
The tariff gap — and its entry fee
CPPAs are dramatically cheaper on paper: around £55–£75/MWh indicative (5.5–7.5p/kWh) versus 11–20p on a utility route. But that price comes with a threshold. Corporate deals typically start at 10MWp+ and expect an investment-grade off-taker, whereas utility PPAs open at 50kWp and accept a far wider range of covenants. If you're not large and highly rated, the cheap tariff simply isn't on the menu — which is why covenant strength is worth understanding via the off-taker covenant guide.
Balancing, credit and REGOs
- Utility PPAs bundle balancing and credit support — the supplier absorbs the shape and imbalance risk.
- CPPAs can push balancing risk onto the off-taker, so treasury sophistication matters.
- REGO certificates transfer directly from the generator in a CPPA, or via the supplier on a utility deal.
Right route for your size
Investment-grade corporates with a treasury function that can manage balancing will extract the lowest cost from a CPPA. Most UK commercial off-takers — mid-market businesses without a credit rating — are better served by the supplier support of a utility PPA. Match the structure to your scale in the funding comparison, and shortlist specialist PPA providers who offer the route you need.
Comparison FAQs
Which option should I pick?
CPPA gives you the cheapest tariff for investment-grade off-takers; utility PPA suits anyone who needs the supplier's balancing and credit support. Run your specific numbers in our PPA calculator before deciding.
Can the two be combined?
Sometimes. SEG income always layers on top of either route. Capital allowances combine only with cash or self-finance — and note solar is a special-rate asset, so it does NOT qualify for full expensing; the correct 100% route is the Annual Investment Allowance (up to £1m/year). PPA + grant rarely stack — most grants exclude PPA structures.
Where can I read more about the underlying mechanics?
Our mechanics hub covers 10 deep-dives on PPA structure, pricing, escalators, term, end-of-contract, off-taker covenant, EPC, O&M and M&V.
Want to model your specific site?
Our calculator runs both scenarios with your actual kWh, tariff and site assumptions.
Open calculatorThis page sets the two side by side; for the mechanism on its own, what a corporate PPA covers works through the covenant, certificate and additionality tests in order.
A third option belongs in this comparison for larger buyers: a virtual PPA UK contract gives the price certainty without touching the supply arrangement.
Utility offers and corporate offers rarely use the same indexation, so compare escalation over the term rather than the opening rate.
Find out what tariff your site would be offered
Corporate PPA vs Utility PPA — tell us about your site and we'll return an indicative p/kWh tariff for it. Reply by email within one working day.