How a Power Purchase Agreement works
A PPA is a financing structure, not a product. FLD and our finance partner fund, install, own and maintain the solar system on your roof. Your business signs a long-term electricity supply agreement for the energy the system produces, at a fixed rate that is lower than your current grid tariff and that rises only with RPI.
- You pay nothing upfront. No capex, no balance-sheet asset.
- You save from day one. The PPA unit rate is set below grid import.
- Term: 10 to 25 years, with buy-out or assignment options.
- End of term: extend, buy the system at residual value, or have it removed.
Decision matrix
| Criterion | PPA | Self-finance (AIA) | Asset finance |
|---|---|---|---|
| Upfront cost | £0 | Full capex | Deposit plus monthly |
| Savings profile | Immediate, smaller margin | Immediate, full margin | Positive after term |
| Balance sheet | Off | On | On (lease) or Off (HP) |
| Best for | Cashflow-sensitive, multi-site | High-margin businesses | Middle ground |
Indicative unit rates
Subject to site survey, credit check and DNO Type A approval, FLD PPAs in 2026 are typically pricing at:
- 9 to 11p/kWh fixed year one, RPI-indexed annually
- Against a current commercial grid import of 28 to 32p/kWh
Savings scale with self-consumption. A 70%-consumption site on a 100 kWp system typically sees first-year savings of £13,000 to £17,000 with zero capex.
Prerequisites
- Trading entity with two years of filed accounts
- Credit check minimum threshold
- Owner-occupier or long lease (minimum term matches PPA term)
- Suitable roof: structural capacity, orientation between east-south-west, no major shading
- DNO G99 Type A connection approval (we manage this)
What we do
- Commercial and technical feasibility
- Heads of Terms and full PPA drafting
- Installation to BS 7671 and MCS-equivalent standards
- Ongoing operation and maintenance for the term
- Performance guarantee linked to insured metered generation
Our process
- 1Site survey
A named FLD engineer visits your site, measures the roof or installation zone, inspects the incoming supply and verifies load, structural integrity and orientation. For commercial sites we run a full discovery including half-hourly consumption data where available.
- 2Design and proposal
We produce a scaled layout, generation model using PVGIS data, financial model with simple and post-tax payback, DNO G99 or G98 notification pack where relevant, and a fixed-price quotation. Every proposal names the exact panels, inverters and mounting system.
- 3DNO and planning
We handle NGED G99 Type A applications for commercial systems, G98 notifications for domestic, and any permitted development confirmation or full planning submissions required for listed buildings or conservation areas.
- 4Install and commission
FLD directly-employed engineers install under a single NICEIC Approved Contractor sign-off. Commissioning includes BS 7671 testing, SolarEdge monitoring portal setup, MCS certification where applicable, and handover of all documentation.
- 5Aftercare
Insurance-backed NICEIC warranty, 25-to-30-year panel performance warranty from the tier-1 manufacturer, 12-year SolarEdge inverter warranty, and ongoing O and M support including remote performance monitoring.
152 kW Parc Dewi Sant NHS, Carmarthen — FLD installation
Recent FLD installation — view all project photos
Standards we work to
- BS 7671
- G99 Type A
- IEC 61215
- IEC 61730
Equipment and components
- SolarEdge
- Trina Vertex
- JA Solar DeepBlue