Rural Hub

Selling renewable energy with a PPA agreement

1 min

Power Purchase Agreements (PPAs) are contracts to supply renewable energy which can help farmers and landowners to maximise the earning potential of their investment.

A PPA is a contract between two parties – one who is generating renewable electricity and the other who wants to buy it – covering an agreed period, whereby the volume and price of renewable energy is set to meet the requirements of the generator and the customer.

If you have more than 60kWs of installed solar PV, wind or any other renewable assets it will be very beneficial to review a range of short-term PPAs to provide additional income for the electricity you generate.

Many landowners and farmers find themselves on Smart Export Guarantee (SEG) rates which can pay as little as 1.5p/Kw. The current surge in energy prices means that you could be achieving 35p/kW for power exported to the grid.  

A short-term, six-month System Sell Price (SSP) contract is a form of PPA which is ideal if you don’t currently have an export meter installed. Also known as ‘spill’ contracts, they enable owners of renewable technology to earn competitive market-reflective prices for any excess energy that is exported to the grid, at any time. There is no requirement for forecasting output. These contracts offer a simple and convenient way to earn extra income from existing generation assets.

Key points

  • Flexible contracts from six months to ten years to suit your circumstances
  • Maximise the earning potential of your assets
  • Best price guarantee for index-linked flexible contracts
  • Access to prices across all major markets and indices
  • Receive regular monthly payments
Lauren Gibson-Green
Director, Land Management
+44 1223 459490
Send a message to Lauren Gibson-Green
1 min

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