With a PPA, you buy electricity directly from a company’s renewable energy projects. It is the primary way to contract directly with a renewable project to procure both electricity and its green attributes together. You can agree a flexible deal for short-term supply or fix the price for the energy you use for the long term, reducing price volatility while greening your power supplies.
The Corporate Renewable Energy Buyers group has created six principles for sourcing renewable energy, focused on choice, transparency and cost.
The Principles state that PPAs are "effective and affordable financing tools" that are critical for businesses to meet their renewable energy goals.
What Other Routes Exist?
Businesses can buy Green Certificates, representing the green attributes of renewable energy generation. Green Certificates (also known as Renewable Energy Certificates or RECs) directly represent renewable energy generation but are separate to energy supply; power may be sourced from a general utility provider or the wholesale market.
Green Tariffs are a green electricity tariff offered to customers by a local utility. The utility may be generating this power itself, buying from other suppliers or buying Green Certificates to cover the commitments to its Green Tariff customers, while not directly generating any green energy.
See below for more information about each route, and how we can help you implement them.
Renewable Buyer’s Guide Overview
PPAs, Green Certificates or Green Tariffs? Download our guide on the various ways to buy renewable energy, to help you decide which one could be best for you.