The Anonymous Widower

Bristol-Based Manufacturer And Centrica Agree Solar Power Purchase Agreement

The title of this post, is the same as that of this article on BusinessLive.

These three paragraphs outline the story.

A Bristol-based architectural aluminium manufacturer has agreed a power purchase agreement and long term lease of 7,000 solar panels on the roof of its UK headquarters.

Smart Architectural Aluminium (Smart) agreed the deal with Centrica Business Solutions, which will see the 2.94MW installation provide Smart with green energy for the next 25 years whilst servicing 20% of the sites current energy needs.

Centrica Business Solutions has started construction on the 7,000 solar panel array, across the roofs of three buildings at the manufacturing site in Yatton, near Bristol. The 2.94MW installation is the result of a long -term lease agreement between Smart and Centrica Business Solutions, which will see Centrica lease the roof space, finance the project and agree a power purchase agreement with Smart.

Some cynics will look at this deal and think that someone is getting ripped off.

• But the project starts with a non-productive asset; three roofs, which Centrica cover with solar panels.
• Most of the electricity generated will go to Smart and be paid for, as they would do, if they get it from the grid.
• Smart gets paid for the lease of the roofs.
• Centrica gets paid for any electricity that is fed into the grid.
• The leasing company gets paid by Centrica.

Centrica would appear to be the company taking the risk and if they do their sums correctly, they should make a profit.

November 22, 2023 - Posted by AnonW | Energy, Finance | Centrica, Corporate Power Purchase Agreement, Leasing, Solar Power