What Are the Tax Benefits of a Solar PPA?

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The latest on UrbanVolt’s journey to make solar PPAs simple. Stay up to date on how we’re funding solar PPAs, developing partnerships, and the impact our projects are making for the businesses and communities we serve.

Organisations evaluating a solar PPA often ask about the associated tax position. It is a legitimate question, and the answer reflects the underlying structure of the agreement rather than a specific set of reliefs designed around it. This article sets out the accounting and tax treatment that applies under UrbanVolt’s model.
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A 20-year contract is a long time, and it’s reasonable to want to know what happens when it ends before you sign anything. The end of term isn’t really an ending at all, but rather a decision point, with several attractive options on the table. Here’s what they look like.
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Yes – leasing your building doesn’t rule solar out. It’s one of the most common questions we get from businesses looking into a PPA, and understandably so, since not owning the roof feels like it should be a blocker. In practice, most leasehold sites can go ahead, provided a couple of things line up.
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A question businesses frequently ask about commercial solar is how long it takes. It’s a reasonable place to start, but the answer depends on the process. The installation itself is relatively quick, but what takes time is the grid connection approval, and that’s in the hands of your Distribution Network Operator.
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The savings a solar PPA delivers aren’t a single headline figure – they depend on three things: how much of your site’s electricity consumption the solar system covers, what you currently pay per unit from the grid, and which pricing model you opt for. Get all three working in your favour and the financial case is compelling.
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The question comes up in every serious solar conversation: is it better to fund the system ourselves or use a Power Purchase Agreement? It is the right question to ask, and the answer is not the same for every business. The difference is in what each one costs your business, who carries the risk, and how long it takes to see a return.
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A Solar Power Purchase Agreement (PPA) is a financing arrangement that allows your business to access solar energy without owning the solar system. Under a PPA, a third-party provider installs and owns the solar panels on your property, and your business pays only for the electricity generated by the system.
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Why customers love working with us

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Lee Hayden Cedarwood Furniture

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Tino Hyland Hyland Shipping

"We saved actual cash of €21,500, which can be put back into other parts of the business – 25% of our overall usage which is significant."

Michael McBride IJM Timber

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John Monaghan Burgmann Packings

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Sean Moran HPC Group

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Andrew Miller Folens

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Paul Murphy Wexford Viking Glass

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Mal McGowan McGowans Print

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Stephen McSharry Kyte Powertech

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