Microsoft Power Apps remains one of the fastest ways for UK organisations to replace spreadsheets, automate manual processes and create custom business applications without the cost of traditional software development. However, licensing can be confusing, especially following Microsoft’s recent pricing changes and the move away from traditional Per App licensing.
Whether you’re planning a single business application or a company-wide digital transformation program, understanding the available licensing options can help you control costs and avoid unexpected surprises.
What Power Apps Licenses are Included with Microsoft 365?
Before purchasing Power Apps licences, it’s worth understanding that many Microsoft 365 subscriptions already include Power Apps capabilities.
Businesses can build and run applications using standard Microsoft 365 data sources and connectors such as SharePoint, Teams, Outlook, Excel and OneDrive without requiring Power Apps Premium licences. Once an application connects to Microsoft Dataverse, SQL Server, Azure services, custom APIs or other premium connectors, paid licensing becomes necessary.
For many organisations, a proof of concept can be developed using existing Microsoft 365 licensing before moving to a Premium model for production use.
Power Apps Licensing Options Compared
The current licensing model is simpler than in previous years, with most businesses choosing between Power Apps Premium and Pay As You Go licensing.
| Licensing Option | UK Price* | Best For | Key Benefits |
| Power Apps Developer Plan | Free | Development and testing | Build and test apps in non-production environments |
| Power Apps Premium | £15.40 per user/month | Regular users and enterprise deployments | Unlimited apps, Dataverse, premium connectors and enterprise governance |
| Power Apps Premium (2,000+ seats) | £9.20 per user/month | Large organisations | Same features as Premium at reduced volume pricing |
| Pay As You Go | Approximately £8.00 per active user per app per month | Occasional or unpredictable users | Pay only when users access the application |
Power Apps Premium
Power Apps Premium has become Microsoft’s primary licensing model for production applications.
At £15.40 per user per month, licensed users can access unlimited Power Apps applications and Power Pages websites, use premium connectors, create custom integrations and store data within Microsoft Dataverse. The licence also includes enterprise-grade governance and security capabilities required by larger organisations.
For businesses building multiple applications, Premium often represents the most cost-effective option because a single licence covers all applications used by that individual.
This is particularly attractive for organisations adopting Power Platform as a strategic business solution rather than a one-off application project. As these licenses are assigned per user, every user in your organisation you need to access Power Apps will need one if you go down this route.
What Happened to Power Apps Per App Licensing?
Historically, Microsoft offered a Per App license that allowed organisations to license users for a single application at a lower monthly cost.
This was effectively replaced with Pay as you go licensing last year, still offering organisations with lower usage a more cost-effective licensing option for Power Apps.
Understanding Power Apps Pay As You Go Licensing
Pay As You Go licensing is often the most overlooked option but can be an excellent fit for certain scenarios.
Instead of assigning licenses to every user, organisations connect Power Apps to an Azure subscription and only pay when authenticated users actively use an application. Effectively only paying for users who actively use each application per month.
This model works particularly well when:
- Application usage is seasonal
- User numbers fluctuate regularly
- Contractors require temporary access
- Pilot projects are being evaluated
- Large numbers of user’s access applications infrequently
For example, imagine a housing association with 1,000 employees but only 100 active users each month accessing a property inspection application. Pay As You Go could significantly reduce licensing costs compared with purchasing Premium licenses for every potential user.
Which Option is Right for Your Business?
Choose Power Apps Premium if:
- Users need access to multiple applications
- Your solution uses Dataverse extensively
- Application usage is daily or regular
- You require simple license management
- Power Platform forms part of your wider digital strategy
Choose Pay As You Go if:
- Usage is occasional or seasonal
- User numbers change frequently
- You’re delivering a pilot project
- Large populations only access the application occasionally
- You want to avoid paying for inactive users
How Bridgeall Can Help
At Bridgeall, we are a Power Apps partner and development consultancy, who help organisations across Scotland and the UK design, develop and support Power Apps solutions that deliver measurable business value. Our Power Apps consultants can assess your requirements, identify the most cost-effective licensing model and ensure your applications are built on a scalable foundation from day one.
Whether you’re replacing spreadsheets, digitising field operations, modernising legacy systems or planning a wider Power Platform strategy, selecting the right licensing approach can have a significant impact on both project success and long-term cost. Discover our Power Apps consultancy services or contact us to get started.
Speak to our Power Apps specialists to discuss your requirements and ensure you’re getting the best value from your Microsoft investment.
