50kWp PPA — UK 2026 indicative cost & PPA tariff

2026 indicative numbers

System size	50kWp PPA
Indicative capex (cash)	£42,000–£55,000
PPA tariff (year 1)	16–20 p/kWh
Annual generation	47,500 kWh
Indicative annual saving	£5,225+ (vs 24 p/kWh grid)
Typical audience	Small factories, primary schools, care homes, large retail units, hotels under 60 rooms.
Off-taker requirement	5+ year tenure, £15k+ 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.

Is a system this small worth a PPA at all?

Fifty kilowatts sits at the very bottom of the commercial PPA market, and the honest answer is that it only stacks up when the numbers line up neatly. Legal drafting, metering and the site survey cost roughly the same whether a funder backs 50kWp or 500kWp, so that fixed overhead is spread across a smaller generation base — around 47,500 kWh a year here. If your PPA units land near 16–20 p/kWh and your grid contract is materially dearer, the deal earns its keep; if you already buy power cheaply, a cash or asset-finance route often beats it.

Self-consumption is the whole story

At this scale there is no export sleeving, no grid-connection drama and no half-hourly settlement to wrestle with — just a roof quietly offsetting daytime load. A 50kWp array on a small factory, a primary school or a care home usually covers a healthy slice of weekday demand, and the value comes almost entirely from kilowatt-hours you would otherwise import. Sites with steady daytime load — fridges, machinery, kitchens — extract the most; premises that empty by mid-afternoon leave generation stranded. Map your load curve first, and the savings calculator will give you a first-pass figure.

What a funder wants before signing

Even a modest array carries a 15-to-25-year contract, so providers still ask who is paying the tariff. For 50kWp, expect them to want around five years of remaining tenure and yearly power bills north of £15,000 — enough to make the funding worthwhile. Thinner covenants can sometimes still be backed with a parent guarantee standing behind them.

• Five-plus years of secure site tenure
• Yearly power bills near £15,000 or above
• Daytime load that soaks up most generation
• A roof in sound structural condition

Getting terms that are actually fair

The smaller the deal, the more the per-unit rate matters, because you carry less leverage than a megawatt buyer. Compare two or three funders, read the escalator clause closely, and check the buy-out and end-of-term options. Our explainer on how PPA tariffs are built up shows where the margin hides, and you can shortlist backers through the provider directory.