Written by Lucy Burrell, Junior PPA Specialist, Renewable Exchange
Community energy groups across England are making a real impact by generating clean electricity, reinvesting profits locally, and supporting the transition to a net-zero economy. But to thrive financially, it’s essential to make the most of the energy you produce. At the heart of this is securing the best possible Power Purchase Agreement (PPA) price.
In this guide, we’ll walk through strategies to maximise your PPA income, understand subsidies and embedded benefits, and improve your project's long-term sustainability.
1. Know Your PPA Options
A PPA (Power Purchase Agreement) is the main revenue contract for most community-owned generators. However, not all PPAs are created equal. There are several types:
- Fixed-rate PPAs: By far the most popular option in the UK as it offers certainty - whenever your asset is generating power, you will be getting paid a fixed rate for that power. This is important for those who have taken out loans to fund their project.
- Variable or floating PPAs: Also known as indexed PPAs. These track wholesale market prices, with a fixed discount or premium, meaning the price you get for your power changes daily. These can be an excellent choice when power prices are high, but means it is very difficult to project how much revenue you will make.
- Dynamic or Flexible PPAs: This is a link between the above two options. Usually this means starting a contract on a variable rate, but having an option to fix prices for the remaining duration of the agreement whenever the generator decides to trigger that clause. The downside here is that when the generator decides to fix a price they can not get competitive bids from multiple offtakers, so they may not get the best market rates.
Tip: Regularly go to market to test your options. Use competitive tender platforms (such as Renewable Exchange) to get transparent pricing from multiple offtakers. Don’t just renew with your existing buyer out of convenience - prices can vary by 10-15%.
2. Time Your PPA Contract Strategically
Wholesale energy markets are volatile, and timing matters. For an operational asset you can secure your next PPA months, or even years ahead of your PPA renewal date. Typically those who get the best revenue streams do so by locking in a PPA when power prices are riding high.
At Renewable Exchange we have two ways for you to keep on top of pricing:
- Power Market Update: our weekly email update to keep you informed of market movements.
- Free platform registration: register to get daily PPA price forecasts, specific to your asset.
3. Tap Into Embedded Benefits
Beyond power, renewable generators (typically under 100 MW and connected to the distribution network) can get paid for embedded benefits.
These benefits are complex and are gradually changing due to regulatory reforms, but some remain accessible and can be extremely valuable depending on your project type and location.
Renewable Exchange forecasts the value of your embedded benefits alongside power, to give you a site-specific, total PPA forecast.
4. Maximise Available Subsidies and Incentives
While many historic schemes (like the Feed-in Tariff) are closed to new applicants, other support mechanisms exist:
- Contracts for Difference (CfD): Competitive auctions for larger projects (over 5MW) with a guaranteed strike price.
- Smart Export Guarantee (SEG): For small-scale generators, though prices are often low.
- Local and regional funding: Via the Community Energy Fund, UK Shared Prosperity Fund, or Local Enterprise Partnerships (LEPs).
Tip: Incentives and subsidies can change regularly, therefore it is important to stay up to date to ensure you aren’t missing out on additional income sources. Renewable Exchange can help you understand what options are available and best suited to your asset to maximise your revenue.
5. Bundle REGO Certificates into Your PPA
Renewable Energy Guarantees of Origin (REGOs) are certificates that verify the renewable origin of your electricity. Buyers usually offer to purchase your REGOs with the PPA, but not always at a fair rate.
Tip: Understand the current REGO market value and ensure it’s clearly stated in your contract. You may be able to sell REGOs separately or negotiate a better bundled price.
Don’t Leave Value on the Table
Too often, community groups accept the first PPA quote they get, or simply renew out of habit. But with the right knowledge and a bit of market engagement, it’s possible to boost your revenues by 10–25%, even for smaller sites.
At Renewable Exchange we offer free, transparent advice to help you actively manage your PPA strategy, understand embedded value, and navigate subsidies smartly, so you’ll not only maximise income, you’ll strengthen your project's resilience for years to come.