Everything you need to know about Corporate PPAs
In an era of geopolitical instability, rising energy prices and ambitious climate targets, keeping your energy costs predictable is vital to the success of your business.
In this article, we explain one way to achieve this: Corporate PPAs. We cover what they are, who they’re for, and how they can help businesses keep their energy greener and their costs more predictable.
Author, Kate Ryder, leads the renewable energy origination team at Good Energy, where she drives bold and innovative contracting that supports the growth of UK renewables. Her team works directly with generators and developers to structure funding and long-term PPAs for both new and existing renewable projects.
What are Corporate PPAs?
Corporate Power Purchase Agreements (Corporate PPAs) have evolved from a niche sustainability mechanism into one of the most powerful strategic energy tools available to modern businesses.
Put simply, they are long-term contracts between a business and a specific renewable energy project to purchase electricity at an agreed price.
They provide price certainty – helping businesses plan ahead with confidence – and support sustainability reporting through real-time matching data and proof of additionality (more on this later).
Who are Corporate PPAs for?
Traditionally, Corporate PPAs have been best suited to large, established organisations with high and consistent energy demand. These businesses are typically able to commit to long-term contracts – often 10–15 years – and demonstrate the financial strength needed to give renewable energy developers and investors’ confidence.
As a result, they have historically been less accessible to smaller businesses or those needing more flexibility around contract length, volume or pricing.
However, the market is evolving. At Good Energy, we take a more flexible approach – making the benefits of Corporate PPAs accessible to a wider range of businesses.
By procuring power from over 3,300 renewable energy projects based here in the UK, we are experienced in these types of contracts which will enable you to access price stability, traceability and sustainability benefits in a way that works for you, for a term that suits you too.
How are Corporate PPAs structured?
Corporate PPAs can be structured in several ways, but the two most common models are Physical and Virtual.
1. Physical PPA
Electricity is supplied directly from a specific renewable energy project into your energy contract, at a fixed price per MWh over an agreed term through your supplier.
2. Virtual PPA
A financial agreement where you and a generator agree a fixed price per MWh and settle the difference against market prices. Physical electricity is purchased separately:
- If market prices fall below the agreed price, you pay the difference
- If market prices rise above it, you receive a payment from the generator
What does ‘additionality’ mean?
‘Additionality’ refers to whether your contract directly contributes to the development of new renewable energy projects – helping to make the UK grid greener.
With a Corporate PPA, you’re not just buying renewable electricity – you’re often giving developers the confidence to build new assets. These long-term agreements can unlock financing, attract investment, and ultimately lead to more renewable generation being built.
Corporate PPAs can also support repowering projects. As subsidies fall away for renewable projects, long-term agreements can provide existing sites – such as onshore wind farms – with the certainty needed to upgrade technology, often significantly increasing their output without changing location.
How do Corporate PPAs support time-based matching claims?
We have long championed transparency in renewable energy supply. Currently, many suppliers rely on annual REGO certificates to label tariffs as 100% renewable.
As reporting standards evolve, businesses are increasingly expected to demonstrate how their electricity is sourced on an hourly basis. Corporate PPAs enable this level of transparency.
With a Corporate PPA, you can see how much of your energy usage is supplied by a specific renewable generator, 24/7. Good Energy can then top up any shortfall with 100% renewable electricity from our network of over 3,300 generators – providing externally verified hourly matching data through an intuitive platform, at no extra cost.
What about behind-the-meter renewable generation?
Behind-the-meter generation is energy produced and used on-site before it reaches the grid – such as rooftop solar, on-site wind turbines, or battery storage.
These solutions can reduce bills, lower exposure to market volatility, cut Scope 2 emissions, and visibly demonstrate your commitment to sustainability. We support thousands of businesses to install on-site solar and batteries through our in-house, nationwide installation team.
However, on-site generation rarely meets 100% of a business’s energy needs. That’s why it works best alongside solutions like Corporate PPAs and hourly matched tariffs, helping you cover your full electricity demand.
Good Energy’s approach to Corporate PPAs
Good Energy is one of the UK’s longest-standing renewable electricity suppliers, with PPAs at the heart of how we support the clean energy transition. We work with over 3,300 renewable generators, from small solar and hydro projects to large wind farms.
Unlike traditional Corporate PPAs, which often require 10–15 year commitments, our approach is more flexible. We can link your energy supply to a specific renewable generator while offering shorter, more adaptable contract structures – so you can benefit from traceable, renewable electricity and detailed hourly matching data without being locked into long-term agreements.
If you’d like to explore how a Corporate PPA could work for your business, get in touch – we’d be happy to help.
