The way businesses use energy is changing. With rising costs and increasing pressure to cut carbon emissions, more companies are turning to ground-mounted solar photovoltaic (PV) systems. These large-scale solar setups offer a practical and cost-effective way to generate your own power, stabilise energy costs, and even create new revenue streams.
Unlike rooftop solar, ground-mounted systems can scale up significantly, making them ideal for businesses with high energy demands or access to land. Whether you’re looking to power your own operations, secure long-term energy pricing through a corporate power purchase agreement (PPA), set up a private wire agreement, or sell electricity back to the grid, this guide will walk you through the opportunities, financial benefits, and key considerations for investing in ground-mounted solar.
Powering Your Own Operations #
For energy-intensive businesses, installing a ground-mounted solar PV system can provide a direct source of clean, cost-effective electricity.
Many industries rely on steady and substantial amounts of power, from manufacturing and logistics to agriculture and data centres. A ground-mounted solar system enables businesses to produce electricity on-site, reducing dependency on the National Grid and insulating against rising energy costs.
Energy prices can be unpredictable, but solar power provides a level of certainty. By generating power on-site, businesses can significantly cut electricity costs while ensuring a more stable and predictable energy supply. This is particularly useful for operations that need consistent power during daylight hours, such as factories, warehouses, and distribution centres.
Several UK businesses have already embraced solar energy with impressive results. For example:
- Jaguar Land Rover installed a large-scale solar farm at their plant, reducing reliance on grid electricity.
- ALDI UK has invested in solar PV across distribution centers, cutting their energy costs.
More than ever, businesses are under pressure to reduce their carbon footprint and demonstrate commitment to sustainability. Using solar energy helps companies meet environmental targets, comply with net-zero policies, and enhance their reputation with customers, investors, and regulators.
Corporate / Virtual Power Purchase Agreements #
A corporate power purchase agreement (PPA) is a long-term contract where a business buys renewable energy directly from a solar provider. This arrangement allows companies to benefit from solar power without owning or maintaining the system themselves.
A Corporate Power Purchase Agreement (Corporate PPA) is a long-term contract between a renewable energy provider (in this case, a solar farm) and a corporate buyer. It involves the purchase of electricity generated by the solar farm at an agreed price, typically over a period of 10 to 20 years. This arrangement allows companies to benefit from solar power without owning or maintaining the system themselves.
A Virtual PPA is a financial contract rather than a physical one, where the corporate buyer does not directly receive the energy. Instead, they agree to purchase the energy produced at a set price, and any electricity generated is sold into the wholesale market. The buyer benefits from price stability and the ability to offset their carbon emissions through the renewable energy generated.
- Stable, Long-Term Revenue Corporate and virtual PPAs offer solar farms a predictable and stable revenue stream, which is crucial for the financial viability of renewable energy projects.
- Attractive Financing Opportunities Renewable energy projects, like solar farms, often require significant upfront capital investment. Having a Corporate or Virtual PPA in place helps provide assurance to lenders and investors, improving access to funding.
- Risk Mitigation Against Market Volatility The energy market can be volatile, with fluctuating prices for electricity. A Corporate/Virtual PPA enables solar farms to lock in fixed or predictable energy prices, helping to mitigate the financial risks associated with market fluctuations.
- Corporate Sustainability and ESG Goals Many UK businesses are under pressure to meet Environmental, Social, and Governance (ESG) targets and sustainability goals, particularly regarding reducing carbon emissions. By entering into a Corporate or Virtual PPA with a solar farm, companies can secure a reliable source of renewable energy and demonstrate their commitment to sustainability.
- Facilitates the UK’s Renewable Energy Transition By engaging in Corporate/Virtual PPAs, solar farms contribute to the UK’s transition towards a low-carbon energy grid.
- Diversification of Energy Procurement Strategy For corporate buyers, securing a PPA with a solar farm can diversify their energy procurement strategy, reducing reliance on traditional grid-based electricity suppliers.
Major corporations in the UK are leveraging PPAs to meet their energy and sustainability targets.
- AstraZeneca has signed agreements to source 100% renewable electricity.
- Amazon UK has committed to large-scale solar PPAs to power its operations sustainably.
Private wire agreements #
A private wire agreement allows businesses to receive electricity directly from a nearby solar PV system without routing it through the National Grid. This setup is particularly useful for companies with significant energy needs and access to suitable land.
- Lower Costs: Avoids transmission and distribution fees associated with grid electricity.
- Energy Security: Provides a reliable and direct power source.
- Greater Control: The business and the solar provider negotiate terms directly, without third-party involvement.
- Proximity: The solar farm needs to be close enough to supply electricity efficiently.
- Infrastructure: Requires private cabling and a connection system.
- Regulatory Compliance: Businesses must meet UK energy regulations and planning requirements.
Exporting to the Grid #
Businesses and landowners can sell excess solar energy to the National Grid, generating revenue while supporting the UK’s renewable energy transition.
Solar energy that is not used on-site can be sold back to the National Grid through schemes such as:
- Smart Export Guarantee (SEG): Pays businesses for surplus electricity exported to the grid.
- Wholesale Electricity Markets: Selling solar power at market rates.
- Revenue Generation: Selling excess energy can create a steady income stream.
- Infrastructure Costs: Grid connections can be expensive, depending on location.
- Market Prices: Electricity rates fluctuate, impacting potential earnings.
The UK government continues to support grid-connected solar, making it an attractive option for businesses looking to maximise their solar investment.
The Future of Ground-Mounted Solar PV in the UK #
 The UK’s solar capacity has surpassed 15 GW and continues to expand.
More businesses are turning to solar to meet sustainability commitments.
Battery Storage: Allows businesses to store excess energy for later use.
Agrivoltaics: Combines solar farming with agriculture to optimise land use.
Policies like the Net Zero Strategy and Contracts for Difference (CfD) make solar more accessible.
Exploring Ground Mount Solar PV #
Ground-mounted solar PV is a smart, scalable solution for UK businesses looking to reduce costs, improve energy security, and enhance sustainability. Whether through direct consumption, PPAs, private wire agreements, or exporting to the grid, solar presents multiple ways to reap financial and environmental benefits. With advancing technology, government incentives, and growing industry support, there’s never been a better time to invest in solar energy.
