Can a model PPA and lease for solar unlock the market?

31/07/2026 Anna Hammond

Earlier this month, we responded to the Government’s announcement on 16 July that hundreds of schools could expect to save on bills in a drive by the Government to slash millions off energy costs.

Here is the next piece in our series. This time looking at how standard contracts could unlock the market for solar on schools...

We’ve been working with the Department for Education (DfE) now for many years to agree terms for a power purchase agreement (or PPA) and roof-lease agreement for the projects on schools where the land is under public ownership, and where academies need consent from the DfE.

Having a model PPA and lease with terms that the DfE has agreement on, from a number of stakeholders, should provide a clearer national legal route, helping to reduce time and cost for projects.

More importantly though, this would improve consistency in the terms that schools are signing up to. So, this should - ultimately - make it easier for responsible bodies to approve solar projects.

Earlier this month, we responded to the Government’s announcement on 16 July that hundreds of schools could expect to save on bills in a drive by the Government to slash millions off energy costs.

Here is the next piece in our series. This time looking at how standard contracts could unlock the market for solar on schools...

We’ve been working with the Department for Education (DfE) now for many years to agree terms for a power purchase agreement (or PPA) and roof-lease agreement for the projects on schools where the land is under public ownership, and where academies need consent from the DfE.

Having a model PPA and lease with terms that the DfE has agreement on, from a number of stakeholders, should provide a clearer national legal route, helping to reduce time and cost for projects.

More importantly though, this would improve consistency in the terms that schools are signing up to. So, this should - ultimately - make it easier for responsible bodies to approve solar projects.

The key to achieving the model agreements will be gaining consensus on the terms so they work for landlords (Dioceses and Councils), schools and Trusts and also funding groups, particularly community energy groups.

Community energy groups often have strong local relationships and access to low-cost community capital.

However, what community-energy groups often lack is resources for repeated legal negotiations, adding months and large legal bills to project costs. This is both unwieldy and unsustainable, and it certainly makes the smaller projects on primary schools economically unviable.

The terms of the ‘model’ lease and PPA are yet to be released by the DfE and we will provide an update as and when it is possible.

We are extremely supportive of a model lease and PPA for all solar installations on schools of all types. It should be noted, though, that the agreements will not negate the need for landlord consent in some instances. However, we hope these agreements will make that process easier too.

Solar for Schools Director, Ann Flaherty, who has worked with solar agreements for schools since 2011, said:

The key to achieving the model agreements will be gaining consensus on the terms so they work for landlords (Dioceses and Councils), schools and Trusts and also funding groups, particularly community energy groups.

Community energy groups often have strong local relationships and access to low-cost community capital.

However, what community-energy groups often lack is resources for repeated legal negotiations, adding months and large legal bills to project costs. This is both unwieldy and unsustainable, and it certainly makes the smaller projects on primary schools economically unviable.

The terms of the ‘model’ lease and PPA are yet to be released by the DfE and we will provide an update as and when it is possible.

We are extremely supportive of a model lease and PPA for all solar installations on schools of all types. It should be noted, though, that the agreements will not negate the need for landlord consent in some instances. However, we hope these agreements will make that process easier too.

Solar for Schools Director, Ann Flaherty, who has worked with solar agreements for schools since 2011, said:

“For many schools, the biggest barrier has not been the roof, installation project costs or the availability of investment. It has been the absence of a clear legal route with terms that are recognised by all parties that negate the need for expensive legal costs to be borne by projects making them uneconomic or so protracted that the parties fail to find agreement.”

Next from us: the benefits of different funding routes...

Can a model PPA and lease for solar unlock the market?

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