UK Sky-High Energy Prices - a solution
- jonnyjetsetter
- 3 days ago
- 3 min read
As the IEA has reported, the UK has amongst the highest industrial electricity prices between 24 reporting IEA countries, nearly 50% above France and Germany, and four times higher than the US and Canada.
Is it about time UK organisations embrace the future with a Corporate PPA?
Given that context, the answer would appear “yes” and therefore moving towards Corporate Power Purchase Agreements would be increasingly compelling for UK industry. This is so for a number of strategic and financial reasons:
1. Hedge Against High Grid Prices
As industrial electricity prices are so high, locking in long-term, fixed pricing via a Corporate PPA lets organisations fix their energy costs at a more predictable and often lower rate; often for periods of 10–25 years. This gives more predictability over future price variances from the grid.
2. No Large Upfront Capital Investment.
With a normal Corporate PPA, the solar developer (such as the AngliaSolar consortium) finances, installs and maintains the system, thus industry does not need to plough resources into buying solar infrastructure. Financial barriers are lowered and competitive electricity supply is on-tap once the solar installation has been installed.
3. Immediate and Long-Term Cost Savings
As the Corporate PPA rate per kWh supplied is often lower than standard grid tariffs, industry can enjoy immediate and ongoing savings from early in the agreement and over the life of the installation.
4. Support Net-Zero and ESG Goals
Sustainability targets are an increasingly important aspect of industry. Corporate PPAs help companies meet and perhaps cut Scope 2 emissions demonstrating green credentials to investors, regulators and customers - all important factors in ESG reporting and stakeholder engagement with business.
5. Broader Market Adoption
Across Europe and the UK, PPAs and Corporate PPAs (CPPAs) are being embraced by major corporates (e.g., Tesco, Amazon, Google) in their drive to sustainable and predictable power. Sector growth as well as the organisations using this model shows its attractiveness to industry.
Strategic Considerations Before You Commit
While PPAs are attractive, organisations should weigh a few key factors:
Asset Suitability
On-site solar PPAs require appropriate roof or land space for PV installation - not every site will be equally suitable. AngliaSolar is happy to advise on the matter.
Contract Terms
PPA pricing structures (fixed vs index-linked) and contract length (often 10–25 years) require careful analysis to align with business strategy and risk appetite.
Grid Interaction
Solar generation doesn’t eliminate grid reliance completely — especially for night-time and peak loads — so PPAs should be part of a broader energy strategy that might include storage or demand-response solutions.
Bottom Line
Yes — now is a sensible time for UK organisations to seriously consider Corporate PPAs as part of their energy strategy. With record-high industrial electricity prices in the UK compared to the rest of the IEA and increasingly cost-competitive solar generation, PPAs offer a practical route to lower predictable energy costs, reduce carbon footprints, and enhance long-term competitiveness.
Corporate PPAs are not a silver bullet — integration with storage, demand management and a diversified energy strategy will maximise value — but for many energy-intensive businesses, a solar PPA is a forward-looking way to face the future with more price certainty.
Contact us today:
Telephone –
London: 020 3026 1856
Norwich: 01603 975321
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