PPA size: 1MWp PPA

1MWp PPA — UK 2026 indicative cost & PPA tariff

For a 1MWp PPA on-site solar system the UK 2026 indicative capex is £750,000–£950,000; under a PPA the year-1 tariff sits at 10–13 p/kWh. Tier-1 manufacturers, large 3PL operators, NHS Trusts, council portfolios, distilleries.

Last reviewed 13 May 2026 5 min read By Cost · 1MWp PPA

2026 indicative numbers

System size1MWp PPA
Indicative capex (cash)£750,000–£950,000
PPA tariff (year 1)10–13 p/kWh
Annual generation950,000 kWh
Indicative annual saving£161,500+ (vs 30 p/kWh grid)
Typical audienceTier-1 manufacturers, large 3PL operators, NHS Trusts, council portfolios, distilleries.
Off-taker requirement20+ year tenure, £400k+ annual electricity spend

PPA vs cash purchase at this size

A 1MWp PPA system costs £750,000–£950,000 to buy outright. Under PPA you pay £0 upfront and get the same kWh for 10–13 p/kWh. Over 25 years a cash purchase typically costs less in total — but ties up capital and puts performance risk on you. See our PPA vs cash comparison.

What drives the tariff at this size

  • System size — bigger systems = lower £/Wp = lower p/kWh
  • Roof condition and complexity (penetrations, shading, age)
  • DNO connection availability — G99 capacity drives build cost
  • Off-taker covenant rating
  • Contract term (15 vs 20 vs 25 years)
  • Escalator structure (fixed vs RPI-linked)
Donovan Fawcett · Director, SEO Dons Ltd Twelve years in UK commercial solar SEO and PPA advisory. Editorial policy & independence.

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FAQs

Size-specific FAQs

What is the typical capex for a 1MWp PPA system in 2026?

For a 1MWp PPA system in 2026, indicative capex is £750,000–£950,000. Under a PPA you don't pay this directly — the provider funds the system and you pay a per-kWh tariff.

What annual generation should I expect from a 1MWp PPA?

In the UK Midlands a 1MWp PPA system typically generates around 950,000 kWh/year — about 950 kWh/kWp. Southern UK gets 1,050; Scotland 850. We model your specific postcode in the calculator.

Who is a 1MWp PPA PPA suited to?

Tier-1 manufacturers, large 3PL operators, NHS Trusts, council portfolios, distilleries.

What's the off-taker requirement for a 1MWp PPA PPA?

20+ year tenure, £400k+ annual electricity spend

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A 60-second form. We'll match you to PPA providers comfortable at the 1MWp PPA band and return a 10–13 p/kWh indicative tariff.

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