The two routes
On-site solar PV
Solar PV installed on hotel property rooftops or grounds. Reduces grid import volume directly. Property-level Scope 2 emissions reduction. Property-level lobby live-generation display, sustainability marketing assets, guest-facing narrative. Typical 100-500 kW per property delivering 25-45% of annual electricity demand. Capex on owner balance sheet (or PPA-funded), AIA tax shield applies, year-1 savings £25-£140k per property.
Corporate PPA
Long-term electricity purchase contract with off-site utility-scale generator (typically solar farm or wind farm). Three structures: physical PPA (electricity and certificates delivered via grid balancing), virtual PPA (financial settlement only, certificates separately delivered), sleeved PPA (electricity routed through licensed supplier). Group-level Scope 2 reduction at scale. Typical 10-15 year terms covering 30-100% of group electricity demand depending on contract structure.
When to add corporate PPA alongside on-site
For UK hotel groups with substantial residual electricity demand after on-site solar deployment — typical for groups above 20 UK properties or with annual group electricity spend above £5m — corporate PPA is the standard 2026 pathway to deliver remaining Scope 2 reduction at scale. Recommended sequencing: (1) deploy on-site solar across the property estate to maximise property-level Scope 2 reduction and marketing return; (2) once on-site portfolio is committed, negotiate corporate PPA to cover residual grid electricity demand at group level.
Quote in 7 working days
Compare PPA and capex for your hotel
Free desk-based feasibility from your half-hourly meter data. Fixed-price proposal within 7 working days. All funding routes modelled — PPA, AIA, hire purchase, lease. Listed Building Consent and brand engineering included.
- ✓ MCS-certified UK specialists across boutique, chain, country house, B&B, conference
- ✓ Honest "no" if your hotel doesn't suit solar — we'll say so before you commit
- ✓ All funding routes modelled (PPA, AIA, hire purchase, operating lease)
- ✓ Listed Building Consent and Hilton/IHG/Marriott/Accor brand engineering included
On-site vs corporate PPA FAQs
What is a corporate PPA?
Corporate PPA is a long-term contract to purchase electricity from a specific off-site renewable generation asset — typically a utility-scale wind or solar farm. The hotel group pays a fixed tariff for the contracted electricity volume; the generator delivers renewable certificates and the underlying electricity (physical PPA) or compensation equivalents (virtual PPA).
On-site or off-site — which is better for a UK hotel group?
Different problems. On-site solar reduces grid import cost and delivers visible property-level sustainability marketing. Corporate PPA delivers group-level Scope 2 reporting at scale, often covers more total demand than on-site can match, and provides additionality narrative. Most large UK hotel groups deploy both routes.
Does Hilton / IHG / Marriott prefer one route?
All four major international brands operate corporate PPA programmes at parent-group level for Scope 2 trajectory contribution. Property-level on-site solar contributes to brand platform scoring (LightStay, MyEnergy, Green Engage, Planet 21). Routes complementary not competitive.