Funding a Green Transition: How PPAs Help UK Manufacturers Cut Energy Costs and Meet Net Zero Targets

Geo Green Power has pointed out that Power Purchase Agreements (PPAs) are making solar energy a more accessible and cost-effective choice for UK manufacturers. This approach allows them to lower energy expenses and cut down on carbon emissions without needing to invest upfront.

With soaring operational costs posing a significant threat to achieving net zero, James Cunningham, the Managing Director at the renewable energy company, shares how flexible financing options are paving the way for manufacturers of all sizes to embrace solar energy.

Energy Pressures Holding Back Growth

Over half of British businesses report that rising and unpredictable energy costs are hindering their growth, with the manufacturing sector feeling the pinch the most.

For manufacturers, where electricity can account for up to 25% of overall costs, installing solar panels can lead to savings of tens of thousands of pounds on annual energy bills while also reducing carbon emissions. However, many businesses still struggle with a clear energy procurement strategy, and the initial costs of renewable systems remain a significant hurdle.

Flexible funding models like PPAs are helping to dismantle that barrier, providing access to green energy without the need for upfront capital.

According to Energy UK, a wider adoption of PPAs could result in up to 11GW of new solar capacity by 2030, making a substantial contribution to the UK’s net zero goals.

A Power Purchase Agreement (PPA) is essentially a deal where a third-party provider sets up and takes care of a solar energy system right on a business's property. In exchange, the business commits to buying the electricity produced at a fixed rate, which is usually lower than what they’d pay for grid electricity.

“PPAs give the manufacturing sector a straightforward and efficient way to embrace solar energy without the financial burden of traditional capital investments,” explains James Cunningham, Managing Director at Geo Green Power. “By entering into a PPA, manufacturers can lock in stable, predictable energy costs, and avoid exposure to volatile energy prices.”

This setup allows manufacturers to tap into renewable energy while sidestepping hefty upfront costs, which can soar into the hundreds of thousands of pounds depending on the size of the system.

Scaling Solar Across Multiple Sites

With tight profit margins and the constant need to demonstrate a return on investment, manufacturers often seek low-risk pathways into renewable energy. PPAs are perfect for businesses that want to test the waters with solar at one location before expanding further.

“We’re increasingly working with manufacturing businesses that are rolling out solar across multiple sites,” Cunningham adds. “PPAs allow them to scale gradually, starting with one location, then expanding over time without taking on huge financial risk.”

Whether it’s for small facilities or large industrial operations, PPAs empower companies to produce their own energy, lessen their dependence on the grid, and potentially bring their energy bills down to zero.

Making Use of Unused Space

Many manufacturing businesses have large, underutilized roof spaces that are perfect for installing expansive solar arrays. By putting a commercial solar system in place, even the empty areas of a building can turn into valuable income-generating assets.
Is Solar Worth It?

Solar systems help reduce dependence on the grid, making manufacturers less susceptible to fluctuations in global energy prices. With rising costs due to tariffs and regulatory changes, renewable energy is quickly becoming a strategic necessity rather than just a nice-to-have for sustainability.

“Solar is a smart investment with significant long-term gains,” says Cunningham. “Funding options like PPA are a low-risk way to adopt solar without financial barriers – and they’re helping more manufacturers get started right now.”

“Not only have solar technology advancements made systems much more efficient and cost-effective, meaning more kinds of properties can install solar for less, but we’re also now regularly working with businesses who access different types of finance to help them start benefiting from solar right away.

If energy costs are putting too much strain on budgets for the new financial year, solar is well worth considering – even if you would struggle to cover an installation upfront.

Discover more about PPAs and commercial solar funding options: Geo Green Power Finance Options