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Generating your own electricity? Here are 6 reasons to sell it using a PPA

If your business generates electricity and buys power from the Grid – making you a prosumer – now could be the right time to enter a Power Purchase Agreement (PPA).

As a prosumer, you may already know that a PPA allows your business to sell some – or all – of your power to a utility company or other buyer. With the energy market’s increasing volatility, this can work to your advantage if you’re able to sell your surplus self-generated electricity at a relatively high price.

While there are a number of PPAs available – which we can help you understand and choose from, if needed – the principles of getting the most from your PPAs are similar. In short, PPAs can enable your business to:

    1.  Turn self-generation into a revenue centre and help you secure a long-term income from the renewable power you produce
      This explains why you need to offset any up-front costs of investing in your own generation technology against the savings – and income – you’ll make in the future.
    2. Enjoy regular returns throughout the full term of your contract
      With monthly payments for your exported energy, you gain the peace of mind associated with consistent added income (although the amounts may vary) throughout the length of your agreement.
    3. Gain access to more revenue generating schemes such as demand side response and flexible capacity
      Once you’re comfortable with the concept and practicalities of a PPA, you may want to consider participating in additional schemes that can deliver more income-generating benefits.
    4. Maintain your commitment to corporate social responsibility goals, or schemes such as RE100
      Some PPAs require the seller to generate only renewable energy. Entering into such a contract can be part of a wider sustainability strategy that helps you reduce costs and achieve your CSR ambitions.
    5. Hedge against rising power prices for any electricity you purchase
      Generating your own power can help you offset the impact of energy bills going up over time – sometimes due to Third Party Costs and sometimes because of electricity price rises.
    6. Make the available capital in your business work smarter, by using it to generate revenue
      Like all businesses, yours has to perform due diligence when considering your investments. Getting your own generation equipment makes sense when returns outstrip costs over an acceptable period.

When it comes to PPAs (as well as other Energy Services), one size doesn’t fit all. There are many different types of PPA, so you need to find the right one for your business: Haven Power’s experts will be delighted to help.

To find out how your business could benefit from a Power Purchase Agreement with Haven Power, please complete our contact form.

 

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