On-site PPA
Generator installs and owns kit on your roof or land; you buy the kWh.
Tariff: 9–18 p/kWh year 1
PPA Mechanics
Solar PPA Structures Explained
Not all PPAs are alike. The structure that fits depends on whether you own the roof, how many sites you operate, your treasury sophistication and whether you need REGO certificates or just cheaper kWh.
Compare the six PPA structures
Every UK commercial solar PPA is one of six structures. Each has its own tariff band, term, risk profile and ideal off-taker — open the full guide for the one that fits your site.
| Structure | Typical tariff | Term | Best for |
|---|---|---|---|
| On-site PPA | 9–18 p/kWh year 1 | 15–25 years | Single-site businesses with 200kWp+ of roof or land, occupying for 15+ years. |
| Sleeved PPA | 11–20 p/kWh year 1 (excludes supplier markup) | 10–15 years | Multi-site businesses, tenants without roof rights, or sites with poor solar resource. |
| Virtual (synthetic) PPA | Strike price typically £45–£55/MWh fixed | 10–15 years | Large corporates with treasury sophistication; net-zero commitments; multi-jurisdiction op |
| Corporate PPA (CPPA) | £42–£60/MWh fixed or partially indexed | 10–20 years | Investment-grade off-takers signing 20MW+ utility-scale solar farm output. |
| Behind-the-meter PPA | 8–14 p/kWh year 1 (lowest tariff band — no grid charges) | 15–25 years | Industrial sites with 1MWp+ load coincident with daytime generation. |
| In-front-of-meter PPA | 13–22 p/kWh (higher because of network use-of-system charges) | 10–20 years | Sites with roof but limited daytime self-consumption. |
Sleeved PPA
Generator builds at a separate location; an electricity supplier 'sleeves' the energy to your MPAN.
Tariff: 11–20 p/kWh year 1 (excludes supplier markup)
Virtual (synthetic) PPA
Financial contract-for-difference referencing a wholesale price — you don't take physical delivery.
Tariff: Strike price typically £45–£55/MWh fixed
Corporate PPA (CPPA)
Direct bilateral agreement with a generator — can be physical or financial, on-site or off-site.
Tariff: £42–£60/MWh fixed or partially indexed
Behind-the-meter PPA
Variant of on-site PPA where generation sits inside your private wire; never touches the public grid.
Tariff: 8–14 p/kWh year 1 (lowest tariff band — no grid charges)
In-front-of-meter PPA
Generation exports to the grid; you receive the kWh via your supply meter under an export-and-import structure.
Tariff: 13–22 p/kWh (higher because of network use-of-system charges)
FAQs
Structure selection FAQs
Which PPA structure is best for a UK manufacturer with 1MWp of roof?
An on-site PPA almost always wins for daytime-heavy industrial loads — or the behind-the-meter variant if the roof connects to a private wire. See the on-site and behind-the-meter guides.
Can I use a sleeved PPA if I'm a tenant?
Yes. A sleeved (off-site) PPA is the standard route for tenants without roof rights — the generator sits elsewhere and a licensed supplier delivers the kWh to your import meter.
Are virtual PPAs available to UK SMEs?
Rarely. Virtual PPAs are financial contracts-for-difference requiring treasury sophistication, IFRS 9 hedge accounting capability, and £500k+ annual electricity spend.
Choosing a structure
Not sure which structure fits your site?
Send us the basics — site postcode, annual kWh, roof area or land — and we'll return a structure recommendation with provider shortlist.
Get an indicative PPA tariff
Across the SEO Dons network
Finance routes
Grants & tax relief
Installer directory
More from the UK commercial solar advisory
commercialsolarfinance.co.uk
Compare lease, asset finance and cash routes alongside PPA on the commercial solar finance hub.
solarpanelgrantsforbusinesses.co.uk
If you'd rather own the system, check live UK grant and tax-relief options on the grants directory.
commercialsolarpanelsinstallation.co.uk
Vetted MCS-accredited installer partners on the commercial solar installation hub.