As organisations accelerate their transition to low-carbon energy, the biggest barrier is often not technology: it’s capital. While the business case for on-site renewables such as solar PV, battery storage and solar carports is well established, competing budget priorities can delay or derail projects. Leading organisations attending the Energy Management Summit are overcoming this challenge by embracing innovative financing models that enable deployment without heavy upfront investment, unlocking energy resilience, cost certainty and decarbonisation at scale…
Power Purchase Agreements: Certainty Without Capital
Power Purchase Agreements (PPAs) remain one of the most popular routes to on-site renewable deployment, particularly for large estates and energy-intensive organisations.
Under a PPA, a third-party developer funds, installs and maintains the renewable asset, while the host organisation agrees to purchase the electricity generated at a fixed or indexed rate over a long-term contract.
Key benefits include:
- No upfront capital expenditure
- Predictable energy costs over 10–25 years
- Protection from grid price volatility
- Reduced Scope 2 emissions
- Minimal operational risk
For organisations facing uncertain energy markets, PPAs offer long-term price stability while supporting net zero commitments.
Asset-as-a-Service and Leasing Models Gain Momentum
Beyond traditional PPAs, asset-as-a-service and leasing models are growing rapidly. These arrangements allow organisations to pay a regular service fee for renewable infrastructure, often bundled with performance guarantees, monitoring and maintenance.
Examples include:
- Solar PV-as-a-Service
- Battery storage leasing
- EV charging infrastructure bundled with solar and storage
These models provide greater flexibility than PPAs, shorter contract terms, and clearer alignment with operational budgets rather than capital budgets, making them particularly attractive in the public sector.
Public Sector Funding and Blended Finance
For schools, NHS estates, local authorities and universities, grant-backed funding schemes remain critical enablers of the energy transition.
As we head into 2026, organisations are increasingly combining grants with private finance to stretch limited funding further. Popular routes include:
- Public Sector Decarbonisation Scheme (PSDS)
- Salix interest-free loans
- Local authority energy frameworks
- Blended finance combining grants with PPAs or leasing
This hybrid approach allows estates to deliver deeper decarbonisation projects, including heat electrification and storage, without relying solely on public funds.
Making the Right Choice: Strategy Over Speed
Choosing the right financing model depends on organisational priorities. Ownership-focused strategies may favour self-funded or lease-to-own models, while resilience and cost certainty may point toward PPAs.
The most successful organisations start with a long-term energy strategy, aligning funding decisions with operational needs, sustainability targets and estate plans.
Lowering the Barrier to Net Zero
The question is no longer whether on-site renewables make sense, it’s how best to fund them. By leveraging PPAs, leasing and innovative finance, organisations can accelerate deployment, stabilise costs and progress toward net zero without waiting for capital budgets to align.
Are you searching for On-Site Renewables for your organisation? The Energy Management Summit can help!
