What is Solar PPA:
A solar power purchase agreement (PPA) is a financial agreement where a developer arranges for the design, permitting, financing and installation of a solar energy system on a customer’s property at little to no cost. The developer sells the power generated to the host customer at a fixed rate that is typically lower than the local purchase of electricity from the grid while the developer receives the income from those sales of electricity as well as other incentives generated from the system. PPAs typically range from 10 to 25 years and the developer remains responsible for the operation and maintenance of the system for the duration of the agreement. At the end of the PPA contract term, a customer may be able to be extend the PPA, have the developer remove the system or choose to buy the solar energy system form the developer.
PPA features and benefits:
Monthly payment per unit electricity delivered A PPA reduces your grid electricity purchases PPA electricity is charged at agreed prices for the duration of the contract. We maintain and manage the system throughout the solar PPA Term Provides future certainty over electricity expenditure.
- No or low upfront capital costs: The developer handles the upfront costs of sizing, procuring and installing the solar PV system. Without any upfront investment, the host customer is able to adopt solar and begin saving money as soon as the system becomes operational.
- Reduced energy costs: Solar PPAs provide a fixed, predictable cost of electricity for the duration of the agreement and are structured.
- Limited risk: The developer is responsible for system performance and operating risk.
- Potential increase in property value: A solar PV system has been shown to increase residential property values. The long term nature of these agreements allows PPAs to be transferred with the property and thus provides customers a means to invest in their home at little or no cost.
Guaranteed minimum 30% cheaper than your current electricity price