The solar sector is experiencing unprecedented growth as businesses increasingly look to solar PV to meet their energy needs. The International Energy Agency predicts that renewables will drive over 70% of global power capacity additions by 2027, with solar leading the charge.

A combination of reliable and cost-efficient technology, established permitting and planning processes, and the availability of capital are fuelling the rapid growth in solar PV installations. The growing recognition of solar power’s reliability and role in the overall energy generation landscape also allows both businesses and solar developers to plan for the long term, giving them the confidence to underwrite plans for 25+ years.

In this shifting energy landscape, large-scale solar projects are becoming crucial in transforming business power systems. Besides their clear environmental benefits, large solar projects allow organisations to reduce their carbon footprint through access to clean energy, reduce their reliance on the grid and offset wholesale energy market price fluctuations.

Current generation storage technology addresses the short-term intermittency and intra-day energy shift, and new technology for long-duration storage is beginning to emerge. Pairing battery storage systems with large-scale solar PV installations ensures predictable costs and further contributes to organisations’ sustainability goals.

Power purchase agreements: a vital commercial pathway
In the rapidly evolving landscape of renewable energy, power purchase agreements (PPAs) have emerged as a cornerstone for businesses seeking to align their operations with sustainability goals while ensuring predictable energy costs.

By reducing cash flow uncertainty, PPAs equip businesses to lock in energy prices through long-term agreements – ranging from eight to 15 years – ensuring stability and resilience in the face of fluctuating energy markets. This financial predictability makes PPAs a transformative asset for businesses across industries.

One example is AMPYR Solar Europe’s (ASE) partnership with Asahi Europe and International for its breweries in the Netherlands. Green energy generated by ASE’s solar parks in Voorne aan Zee, Venray and Echt-Susteren, powers Asahi’s operations and helps its breweries achieve their sustainability milestones. This collaboration extends benefits beyond direct participants, creating ripple effects throughout supply chains and contributing to broader decarbonisation goals. The project also includes an innovative agri-PV pilot that will be used to grow blueberries beneath the solar panels. The crop will be donated to Zorgboerderij de Groense Bos, a local community care farm.

PPAs equip businesses to lock in energy prices through long-term agreements – ranging from eight to 15 years – ensuring stability and resilience in the face of fluctuating energy markets.

The PPA market has matured significantly in recent years, moving beyond conventional, ‘vanilla’ contracts to highly sophisticated agreements. Companies today seek tailored solutions that align closely with their operational goals, energy consumption profiles and sustainability strategies.

This is illustrated by AMPYR Solar Europe’s agreement with VW Kraftwerk – a multi-year, multi-project contract with an innovative commercial structure. The contract coexists with the government subsidy programme, allowing more flexibility and resources to address environmental, social and governance challenges. VW Kraftwerk plans to purchase over 650,000 Guarantees of Origin over 10 years to facilitate the expansion of renewable energy for a growing and sustainable electric vehicle fleet within the Volkswagen Group.

For businesses exploring large-scale solar projects, due diligence is critical. Key factors to evaluate include:

• Balancing costs – understand how these costs will be distributed and managed within the PPA structure.
• Experience and technical capability – choose a developer with a proven track record in delivering successful renewable energy projects.
• Financial stability – assess the developer’s financial partners and their ability to support projects over the long term.
• Portfolio and success stories – look for a strong portfolio of completed projects and satisfied international clients as an indicator of reliability and expertise.

Choosing a partner with these key capabilities is the best guarantee that the partnership will lead to the expected results.

Large-scale solar: supporting a brighter future
Looking ahead, we can expect that large-scale solar projects could play a pivotal role in the transformation of business energy networks. However, more regulatory clarity and streamlined permitting processes are needed to further boost the expansion of the sector. Investors require certainty, and regulatory inconsistencies and policies that discourage investment are likely to be detrimental to the success of the utility-scale solar industry.

By achieving consistent policies across different regions and collaborating with local authorities and large energy users, policymakers could allow large-scale solar projects to reach their full potential. Enhancing grid capacity and integrating Renewable Electricity Certificate (REC) frameworks would also give a boost to the sector to materially accelerate progress towards the UK’s clean energy goals.

Challenges do remain across Europe’s regulatory framework but, in spite of that, we can expect to see large solar projects continue to increase as a cornerstone of the clean energy journeys of modern business.

The views and opinions expressed in this article are strictly those of the author only and are not necessarily given or endorsed by or on behalf of the Energy Institute.

• Further reading: ‘More renewable energy schemes now rely on corporate purchase agreements’. Not all renewable energy projects are supported or incentivised by governments – an increasing number now depend on corporate customers to get built, explains New Energy World Editor-at-large Steve Hodgson FEI.
• Corporate power purchase agreements have become an important driver of the energy transition and also enhance energy security in Europe, explains Joop Hazenberg, Policy and Impact Director of the RE-Source Platform, Europe’s leading forum for direct renewable energy sourcing.