What is a sleeved PPA, and how do you choose a commercial solar PPA provider?

How a sleeved PPA works

A generator agrees to sell its output to your business at an agreed price. Because the generator is not on your site, a licensed supplier takes that power onto the grid, matches it against your use, adds any top-up supply you need and sends one bill. That "sleeving" service is why it is called a sleeved PPA. Network, balancing and supplier charges still apply, because the electricity travels through the grid.

Sleeved vs on-site vs private-wire PPAs

For a full explanation of on-site contracts see our commercial solar PPA guide.

Why on-site solar often beats a sleeved PPA

Power generated on your own roof and used on site avoids most of the grid, network and supplier costs on those units, which is where much of the saving comes from. A sleeved PPA can secure renewable supply and price certainty, but those charges remain. If you have a large, sound roof and daytime demand, start with on-site options. Our finance guide compares buying, loans, leases and on-site PPAs.

How to choose a commercial solar PPA provider

Compare providers on more than the headline price. Check:

• The starting unit price, and whether it is fixed, index-linked or stepped each year.
• The contract length and whether it fits your lease or ownership plans.
• Who maintains, monitors, insures and repairs the system.
• What happens if you move, sell the building or close a site.
• Early buy-out terms and the cost to buy the system during the contract.
• What happens at the end of the term: transfer, removal or renewal.
• The provider's track record, installer accreditation and financial strength.

Schools should also read our guide to roof condition and PPA contracts, and see how we vet partners on our guarantees and accreditations page.

Frequently asked questions