Tuesday 7th of June 2022 | Posted In: Renewable energy, Use and Manage

Power Purchase Agreements

Thinking of renewables? As well as the installation itself, if your renewable system generates more energy than you use, a mains protection relay, export meter and Power Purchase Agreement (PPA) could be all that stands between you and generating a new and potentially lucrative source of income.

What is a Power Purchase Agreement?

Put simply, a PPA is a contract between two parties, one which generates electricity (the generator) and one which is looking to purchase electricity (the buyer).


“If you have excess power being generated from a set of solar panels, wind turbines, hydro plant, anaerobic digestion plant or CHP engine, NFU Energy will find and secure the best contract for the sale of the excess power you generate and export to the grid.”


The PPA defines all of the commercial terms for the sale of electricity between the two parties, including when the project will begin commercial operation, schedule for delivery of electricity, penalties for under delivery, payment terms, and termination. There are a number of different contractual models by which a PPA can be delivered, and it is important to understand what choices of PPA delivery models there are, the differences between them and their associated opportunities, benefits and risks.

What is a Corporate Power Purchase Agreement?

A ‘private wire’ or Corporate Power Purchase Agreement will enable you to sell energy directly to any business-based neighbours. The best case for this is a recent piece of work we did between a food processing company and a neighbouring CHP engine owner. These contracts work best over a longer time period and we can help you to put this in place so the agreement serves both parties to the best of their interests.  

NFU Energy can help you understand any of these opportunities and benefit from the best option for your installation. NFU Energy runs a devoted Renewable Energy Solutions (RES) service, where we connect project owners with trusted installers, insurers, and financiers to streamline renewable projects and minimise any potential risks. Should you want to explore our Renewable Energy Solutions service in more depth or receive guidance on securing a better PPA contract, contact us today on 024 76696512 or at [email protected]