As businesses around the world look for innovative ways to reduce operational costs and meet sustainability goals, many are turning to solar power. Shannon Energy offers commercial organisations a powerful solution to achieve these goals through Power Purchase Agreements (PPAs). But what exactly is a PPA, and why are more businesses choosing this path for their solar PV installations? In this blog, we break down what you need to know about PPAs and how they can benefit your business.

What is a Power Purchase Agreement (PPA)?

A Power Purchase Agreement, or PPA, is a contract between a solar developer and a business. Under this agreement, the developer designs, instals, and maintains a solar PV system on the business's property—typically on a large rooftop or in a dedicated area such as a groundmount or carport. The business then agrees to purchase the electricity generated by the system at a fixed rate for a specified term, typically between 15 and 25 years.

This arrangement allows businesses to benefit from clean, renewable energy without the upfront costs usually associated with solar installations. Instead, the developer assumes the financial risk of installing and maintaining the system, while the business gets reliable access to solar power at predictable rates. This is increasingly of interest to Irish businesses following the price fluctuations over the last few years and growing international instability.

Who Organises a PPA?

PPAs are organised by a solar developer or energy service company, who manage every step of the process: conducting site assessments, handling permits, securing financing, and overseeing installation and maintenance. Each solar developer has their own financing company that they work with, where all terms and conditions are agreed upon between both parties. This end-to-end service relieves the business of the time, expense, and complexity of managing a solar project on its own.



Shannon Energy, for example, not only provides customised PPA solutions but also monitors the performance of each system through a dedicated operations centre, ensuring that it delivers optimal energy generation over the life of the contract. This allows our clients to remain focused on their core business, knowing their solar energy needs are fully taken care of.

The Benefits of a PPA

There are numerous reasons why businesses are increasingly choosing PPAs for their commercial solar needs:

1. No Upfront Costs: A significant barrier for many businesses is the high upfront cost of purchasing a solar PV system. PPAs eliminate this hurdle, making solar accessible to organisations that may not have the capital available for such an investment.

2. Lower, Predictable Energy Costs: By entering a PPA, businesses often gain access to energy rates that are lower than what they’d pay for grid electricity. PPAs offer either a fixed or discounted rate, helping businesses hedge against future energy price fluctuations.

3. Alignment with Sustainability Goals: Many businesses are adopting renewable energy as part of their sustainability strategies. By securing a PPA, they can reduce their carbon footprint, enhance their environmental credentials, and appeal to environmentally conscious customers and stakeholders.

4. Maintenance-Free Operation: With a PPA, the developer assumes responsibility for system maintenance. This allows the business to benefit from clean energy without having to worry about repairs, replacements, or other operational tasks.

5. Option to buy the system outright:  With a PPA although the system is originally not owned by you, you have the option to buy the system outright at any stage during the PPA duration.

Potential Challenges of a PPA

While PPAs offer many advantages, businesses should consider a few potential challenges:

Long-Term Commitment: PPAs are long-term agreements, typically spanning 15–25 years. This means businesses need to commit to the property and energy arrangement over this period, which may not be suitable for all organisations.

Potential Limitation on Property Use: A solar PV system may limit future property modifications or expansions due to roof space usage, building restrictions, or shading concerns.

Who Benefits Most from a PPA?

PPAs are especially beneficial for commercial organisations that:

• Have consistent, predictable energy needs.
• Want to reduce energy costs and carbon footprint but lack the capital to fund a solar PV installation.
• Have ample rooftop space, ground area, or parking spaces that can host a solar PV system.
• Are committed to being in their current location for the foreseeable future.

Why Choose Shannon Energy for Your PPA?

At Shannon Energy, we specialise in providing businesses with tailored, behind-the-metre solar PV solutions. With our extensive experience in large rooftop projects, ground mounts, and carports, we help businesses harness solar energy to achieve their sustainability and cost-saving goals. Through our National Operations Centre, we offer ongoing monitoring and performance evaluation, ensuring the maximum Return On Investment for every PPA client.

Ready to Explore Your PPA Options?

PPAs are a fantastic option for businesses looking to gain the benefits of solar without the investment burden. If you're interested in learning more about how a PPA could work for your organisation, contact Kale@ShannonEnergy.com today. Together, we’ll create a solar solution that meets your needs and advances your environmental objectives.