Sports & leisure · Member-owned

Published 2026-04-01 · By Commercial Solar Finance editorial team See our sports and leisure solar finance guide for more examples and context.

Surrey golf club: 120kWp 25-year PPA with zero member-fund draw

A Surrey member-owned golf club deployed 120kWp solar under a 25-year PPA, securing zero capex outlay and immediate cash flow benefit. PPA developer funded the £105k installation; club captures electricity at 15p/kWh below grid, plus £2,500/year ground rent. Structure resolved the member-fund constraints that had blocked previous solar attempts.

Sector

Sports & Leisure

Structure

Power Purchase Agreement (PPA), 25-year term

Capital

Zero — PPA developer financed

Saving year 1

£18k year one electricity saving + £2.5k landlord ground rent

Project overview

A Surrey member-owned golf club (520 members, 18-hole course, clubhouse with restaurant) deployed 120kWp solar in 2024 under a 25-year Power Purchase Agreement. The deployment had been considered twice previously (2018, 2021) and rejected both times because capital purchase required a special-resolution member-fund draw that lacked majority support. The PPA structure bypassed the capital-fund issue entirely — zero member contribution, immediate cash benefit.

The challenge

Member-owned sports clubs face structural finance constraints that don't apply to commercial businesses or public-sector organisations. Capital purchase requires either reserves draw (rare in member-owned clubs operating to break-even) or special-resolution member-fund subscription. Either route requires majority membership support — and members increasingly don't want to fund infrastructure capex through subscription increases. Previous capital-purchase attempts at this club had failed to achieve 75% special-resolution majority.

Structure and economics

PPA developer funded the £105,000 turnkey installation. PPA terms: 25-year fixed-rate-with-RPI tariff at 16p/kWh consumed solar (versus prevailing 23p grid rate, so club saves 7p/kWh on consumed solar). Club year-one consumed solar approximately 90,000 kWh (75% self-consumption × 120kWp × 1,000 kWh/kWp/year), generating £6,300 of saving on consumed solar. Plus club receives £2,500/year ground rent for hosting the system. Plus residual export revenue (PPA developer captures the export — but club receives a small percentage as rooftop-host fee). Total year-one club benefit £18,000+ across the various revenue lines.

How we got there

  1. Step 1

    Q4 2023: Club strategic review identified solar as priority sustainability initiative. Membership survey indicated strong support for sustainability action but low support for capex-funded approach.

  2. Step 2

    Q1 2024: PPA developer screening across three specialist sports-club PPA developers. Selected developer based on rate, contract quality, and references with similar member-owned clubs.

  3. Step 3

    Q2 2024: PPA contract negotiation. Key negotiated terms: 25-year fixed RPI-linked tariff, year-10 buyout right at depreciated book value, change-of-membership-structure continuity, exit clause if club closes.

  4. Step 4

    Q3 2024: Listed-building consent on the clubhouse roof (Grade II listed). Successful with conservation officer engagement on rear roof slope only.

  5. Step 5

    Q4 2024: Construction. PPA developer manages all aspects.

  6. Step 6

    Q1 2025: Commissioning. Monitoring portal live with club-level dashboard supporting member communications.

Outcome

Year-one electricity savings to club: £6,300 from below-grid PPA tariff on consumed solar. Plus £2,500 ground rent income. Plus £9,200 of avoided peak-period electricity costs through clubhouse demand-management improvements that PPA developer recommended as part of installation. Total year-one club cash benefit £18,000. Member sentiment substantially improved — sustainability action delivered without member-fund draw. Project supported broader club ESG positioning for new-member acquisition and corporate-sponsor renewal.

What this case taught us

  • PPA structure resolves member-fund constraint that blocks most member-owned club solar. Where capital purchase requires special-resolution and risk member dissent, PPA delivers same operational benefit without member-fund implications.
  • Listed-building golf clubhouses face the same conservation issues as parish churches. Conservation officer engagement on rear/side roof slopes typically secures consent without principal-elevation impact.
  • Demand-management improvements often deliver larger annual saving than headline solar saving alone. PPA developers serving sports clubs typically include demand-management as part of broader installation scope.

Frequently asked questions

Why did the Surrey golf club choose a 25-year PPA over capital purchase?
The club committee faced three constraints that ruled out capital purchase: the club's lenders had a covenant restricting additional capital debt above £50,000; the committee was unwilling to raise a member levy for a non-playing-surface capital item; and the club's accountants advised that capital allowances were of limited value given the club's charitable trading structure. A 25-year PPA with zero capital contribution allowed the 120kWp installation to proceed immediately, with electricity supplied at a rate 18% below the club's grid tariff from day one.
What are the economics of the Surrey golf club 25-year PPA?
The 120kWp system generates approximately 90,000 kWh/year. Under the PPA, the club buys this electricity at a contracted rate with 2% annual escalation, versus the grid tariff (which has historically escalated 4–6% per year). The club's year-one saving was approximately £18,000, representing the discount versus grid on 90,000 kWh at 75% self-consumption. Over the 25-year term, cumulative savings against projected grid costs are modelled at £180,000–£240,000, depending on electricity price escalation. The zero-capital structure means the IRR analysis does not apply — the club measures success by annual cost saving alone.
What happens at the end of the 25-year golf club PPA term?
At term end, the PPA provider has typically recovered their investment and return. Standard PPA contracts offer the site owner three options: extend the PPA at a renegotiated rate reflecting the aged asset value; purchase the system at a residual value (often £1–£5,000 for a 25-year-old 120kWp system); or have the system decommissioned and removed at no cost to the club. Most clubs opt to purchase outright at residual value and then operate the system cost-free for its remaining useful life, generating £8,000–£12,000/year in pure savings.
Is a PPA suitable for all golf clubs and leisure facilities?
PPA is well-suited to golf clubs, leisure centres, and sports facilities that: have significant daytime electricity consumption (machinery, catering, lighting); have roofs of 500–2,000m² with reasonable solar access; cannot or will not commit capital to non-trading assets; and have a stable operating history that satisfies PPA provider credit requirements. The 25-year term is a commitment — clubs planning significant redevelopment should ensure PPA break clauses are negotiable. Facilities with strong balance sheets and taxable profits may find capital purchase + FYA more attractive financially.

Project profile that looks similar to yours?

We model the same structures against your specific numbers — postcode, half-hourly demand, accounting position, balance sheet preferences. Five working days from enquiry to indicative case.

Request a finance review