For local authorities, renewable energy strategy is very much about how to structure investment to balance cost, carbon reduction and operational resilience. With tightening budgets, grid constraints and ambitious net zero targets, councils attending the Energy Management Summit are increasingly weighing the relative merits of on-site generation and off-site procurement models such as power purchase agreements (PPAs). The optimal solution is rarely either/or, but understanding the trade-offs is critical…
On-site renewables: visibility and control
On-site generation, particularly rooftop solar across schools, leisure centres and civic buildings, remains an attractive starting point. It offers visible decarbonisation progress, direct reduction in grid imports and long-term savings once capital costs are recovered.
For councils with high daytime demand (such as office estates or swimming pools) on-site solar can meaningfully offset consumption. It also reduces exposure to wholesale price volatility.
However, deployment is often limited by roof suitability, structural constraints, planning considerations and capital availability. Grid export capacity can also restrict system size, particularly in areas where distribution networks are already constrained.
Battery storage is increasingly paired with on-site generation to maximise self-consumption and provide limited resilience during short outages, though it does not replace backup generation for critical services.
Off-site PPAs: scale and predictability
Where on-site potential is limited, off-site renewable procurement through corporate PPAs is gaining traction. By contracting directly with a renewable energy generator, councils can secure long-term price certainty while supporting additional clean energy capacity.
Virtual PPAs and sleeved agreements enable local authorities to match large portions of their electricity demand with renewable generation, even if the assets are geographically remote.
For energy managers, the key advantage is scale. Off-site arrangements can deliver significant carbon reduction quickly, particularly for authorities with dispersed or energy-intensive estates.
The complexity lies in contractual structure, counterparty risk and alignment with evolving regulation. Strong procurement and legal oversight are essential.
Community energy and local benefit
Some councils are also exploring community energy partnerships, investing in or supporting local renewable projects that generate both carbon savings and social value.
This approach can enhance local engagement and deliver reinvestment into communities, but typically requires careful governance and risk assessment.
Designing the right mix
Leading local authorities are adopting blended strategies: maximising viable on-site generation, supplementing with off-site PPAs for scale, and exploring community schemes where appropriate.
The right mix depends on estate profile, financial flexibility, grid capacity and resilience priorities. By aligning procurement decisions with both carbon targets and operational realities, councils can create renewable strategies that are financially sound, climate-aligned and fit for long-term public service delivery.
Are you searching for renewable energy solutions for your organisation? The Energy Management Summit can help!
Photo by Jakub Żerdzicki on Unsplash
