2MWp PPA — UK 2026 indicative cost & PPA tariff

2026 indicative numbers

System size	2MWp PPA
Indicative capex (cash)	£1.45m–£1.85m
PPA tariff (year 1)	9–12 p/kWh
Annual generation	1,900,000 kWh
Indicative annual saving	£209,000+ (vs 24 p/kWh grid)
Typical audience	Tier-1 manufacturers, data centres, very large 3PL hubs, multi-site retail rooftops aggregated.
Off-taker requirement	25 year tenure or parent guarantee, £750k+ annual electricity spend

Grid import benchmark: 21–25 p/kWh for Medium to Extra Large non-domestic consumers (all-band average 24.14 p/kWh). Source: DESNZ Quarterly Energy Prices, table 3.4.2 (including CCL, excluding VAT), Q1 2026, published 30 June 2026. Re-verified 1 September 2026.

Two megawatts usually means more than one roof

At 2MWp a single building rarely offers the roof area, so this band is frequently an aggregation play — the same capacity spread across a multi-site retail estate, a warehouse cluster or a data-centre campus, all wrapped into one PPA. The indicative £1.45m–£1.85m build cost and the 9–12 p/kWh tariff reflect the buying power scale brings: this is around 1.9 million kWh a year, at some of the keenest per-unit rates distributed generation reaches.

The grid and the guarantee

Two things dominate diligence here. First, grid connection: several G99 applications or one larger connection put the DNO's timelines and any reinforcement costs squarely on the critical path, and export limits can shape how the sites are configured. Second, credit — funders typically want a full 25-year term or a parent-company guarantee, plus group electricity spend of £750,000 or more, because they are underwriting a multi-decade, multi-site income stream.

Metering, apportionment and export

Aggregated PPAs carry administrative weight. Every site has its own half-hourly meter, generation and consumption must be apportioned fairly, and any surplus needs an export or sleeving route agreed with a supplier. Data centres are the outlier — their near-constant load self-consumes almost everything, which is exactly why they make such attractive off-takers.

• A 25-year term or a parent guarantee
• Group electricity spend beyond £750,000
• DNO connections scoped across every site
• Half-hourly metering and apportionment resolved

Structuring a multi-site deal

Deals this size reward preparation. Understand what funders underwrite in the off-taker covenant guide, set an aggregated on-site PPA against a sleeved alternative in the comparison library, and shortlist funders geared up for portfolio work through the provider shortlist.