Solar PPA for Schools: Zero Capital Cost Solar & Battery
A power purchase agreement funds, installs and maintains your school's solar and battery at no upfront cost — the school simply buys its own cheaper, fixed-price electricity for 15 years.
What is a solar PPA?
A power purchase agreement (PPA) is a long-term contract in which a funding partner pays for, installs, owns, insures and maintains solar panels — and usually battery storage — on the school's roof. The school buys the electricity the system generates, on site, at a single price per kWh.
The rate is set below the school's current grid tariff, fixed for the whole term — commonly 15 years — and not linked to inflation. Every kWh the school self-consumes is cheaper than the grid alternative from day one, and the gap widens every year as grid prices rise while the PPA rate stays flat.
This is not a grant or a lease: there is no capital outlay, no borrowing and no lease liability on the school's balance sheet. It is simply a cheaper way to buy electricity.
Illustrative unit cost (p/kWh)
Illustrative assumptions only — actual PPA rates are quoted per site following survey and yield modelling. Actual savings depend on consumption patterns and tariffs.
Five things the PPA covers
Funding & installation
The funding partner pays the full capital cost of the system — panels, inverters, mounting and (where modelled) battery storage — and installs it on the school's roof, scheduled around term dates.
Ownership & insurance
The funder owns and insures the system for the term. The school carries no asset risk and no lease-accounting complexity.
Fixed-price electricity
The school buys the electricity it uses at one agreed price per kWh, flat for 15 years. No indexation, no surprise rate reviews.
Full O&M and monitoring
Servicing, cleaning, monitoring and a performance guarantee are included for the whole term — the school never pays for a repair or an inverter replacement.
Asset transfer at year 15
At the end of the term the school typically has the option to take ownership — often for a nominal sum — and receives free power for the remaining life of the panels.
PPA or buying outright?
Both routes deliver the same physical system — the difference is who funds it, who owns it and who carries the risk.
| Factor | Buy outright | Solar PPA |
|---|---|---|
| Upfront capital | Full system cost (£20k–£200k+) | £0 |
| Ownership | School, from day one | Funder for the term; transfer option at year 15 |
| Maintenance & insurance | School's cost and responsibility | Included, funder's responsibility |
| Savings | Full generation value after payback (typically 4–8 years) | Immediate — cheaper tariff from day one |
| Budget / borrowing impact | Uses reserves or borrowing capacity | None — no borrowing, no lease liability |
| Performance risk | School | Funder (performance guarantee) |
| Best for | Schools with reserves and a sound roof | Schools protecting budgets, multi-site trusts, anywhere immediate savings matter |
A feasibility study should model both routes on your actual consumption and roof — the right answer differs site by site. See our full solar panels for schools guide for costs and other funding routes.
The government is piloting exactly this model
In July 2026 the Department for Education announced a pilot in which 150 schools and colleges — in Yorkshire and Humber, the East Midlands and the South East — will receive privately financed solar: investors fund, install, own and maintain the panels at no upfront cost, and the school buys the electricity at a rate significantly cheaper than its normal tariff. A national rollout is planned from 2027–28.
UEC Energy delivers this same PPA model to schools now, as technical lead and operations partner for RECfA (the Renewable Energy Coalition for Academia). Where a school is eligible for a grant wave, we will say so — a grant is usually the better first option. The PPA route exists for schools that are not covered, or that want to move before the rollout reaches them.
Read the Great British Energy Scheme GuidePPA questions, answered
Does a PPA really cost the school nothing?
There is no upfront capital, no borrowing and no lease liability — the school only pays for the electricity it actually uses, at a fixed rate below its grid tariff. The trade-off: the funder owns the system during the term and shares part of the generation value; most PPAs include an asset transfer option at the end.
What happens if the roof needs work during the term?
Roof condition is checked at survey before anything is installed. If refurbishment is needed, it is sequenced first — panels last 20–25 years, so the roof must outlast them. The funder coordinates panel removal and refitting for any agreed roof works under the contract.
Can battery storage be included?
Yes — battery storage can be funded within the same PPA structure. It shifts cheap daytime solar into evening lettings and peak-rate periods, raising self-consumption. See our battery storage for schools guide.
What about the electricity we export?
Surplus generation (holidays, weekends) is exported and can be monetised — today at standard export rates, and under the P441 settlement changes and SENfA platform, at materially better local rates. The full model is in our schools capability statement.
See what a PPA would save your school
UEC Energy models the PPA against buying outright on your actual half-hourly data, checks grant eligibility first, and gives you both numbers before any commitment.
Book a Free Feasibility StudyPart of our schools programme: solar panels for schools · funding routes compared