This can be enacted as follows:

• Third party designs, builds and commissions solar and storage generation assets onsite.
• Solar energy used onsite is covered under a PPA which should provide a reduction in energy bills for the local authority.
• The asset owner uses revenue from the PPA and other commercial opportunities to recover costs.
• Any excess revenue is retained by the service provider.

In this model, solar and storage technologies are deployed at scale. This means that the benefits from numerous sites can be aggregated. Adopting this portfolio approach could mean that less desirable sites, where the business case for storage and site optimisation may not stack up on its own, are able to be included.

• Local Authority benefit from solar and storage without having to invest
• Installation covered under a “licensing arrangement”, which means the assets are owned by a 3rd party
• Any power used on site from the assets is covered under a PPA, and should provide a reduction in energy bills for no up front cost
• The asset owner uses value they generate to recover costs – any extra is kept as margin
• Primarily aimed at cluster of homes (e.g. social housing) and can include further upgrades like low carbon heating or retrofit
• Model is also applicable for any organisation with multiple sites depending on suitability

Key Benefits

Financial and CO2

• Energy bill reduction – estimated 10-20% reduction in energy bills for no up front investment
• Fixed price PPA and provides price certainty. Other Benefits
• Helps finance roll out of solar and storage at scale
• Fair transition – Allows low cost access to net zero transition,
• Reduces complexity and effort of delivery in house

Other Benefits

• Helps finance roll out of solar and storage at scale
• Fair transition – Allows low cost access to net zero transition,
• Reduces complexity and effort of delivery in house

Risks and Considerations

Potential legal issues of roof licensing and 3rd party asset ownership

• Complexity on energy supply contracts, especially with tenants
• Only deployed in social housing currently
• LA loses control of future revenue opportunities 
• Cost of finance likely to be higher