How a PPA works?
PPAs may only be used for projects in jurisdictions that permit third-party ownership of energy-producing equipment. Non-utility suppliers in regulated markets may face restrictions or prohibitions from selling electricity in certain states.
A PPA involves the customer entering into a financial contract with a third-party developer to obtain power generated by solar panels, wind turbines, or other types of energy produced on the roof of a building or nearby. As a result, the customer is sometimes referred to as the off-taker or power purchaser. Although the customer/off-taker often provides the physical site for the solar or wind system to be hosted, this is not required, and the host and customer/off-taker may be separate firms in leased buildings. For the duration of the PPA, the developer and its investors own the equipment.
The customer then purchases the energy system's electric output at a rate that is often lower than the retail rate charged by the utility provider, resulting in instant cost savings. PPAs are generally long-term contracts that may span from 10 to 25 years. When the contract expires, the customer can have the equipment removed from the property, acquire the system from the developer, or extend the contract duration.
The utility that serves the client connects the energy system to the power grid and will continue to provide service if the system does not generate enough power to fulfill the customer's electrical demands. When the system generates extra energy, it may be sold to the utility at retail electricity rates. This is known as net metering, and most jurisdictions have implemented net metering requirements.
Lastly, there are two distinct physical PPA structures:
An On-site PPA is a contract for providing power from a solar plant installed on the customer's premises and linked to its internal network. The renewable energy developer finances install, manages, and maintains the facility. The energy created by the solar panels is energy that the client no longer requires from the grid; thus, the developer supplies this energy to the consumer at a lower price.
An Off-site PPA is a contract linked with a utility-scale solar or wind farm interconnected to the transmission or distribution network of a country's electrical system to transport energy from its origin to its point of consumption.
We provide numerous financing alternatives to our customers, enabling them to go solar with no money down and no effect on their balance sheet.
Power Purchase Agreements
- No upfront cost or effect on the balance sheet
- A low, fixed, all-inclusive kWh rate
- Pay-as-you-go arrangement.
- Included O&M
- Receive monthly “rental” payments for hosting a solar energy project on your property.
- Incremental source of Income
- Development of PPA
- On-site sustainability impact assessment
- Included O&M
Co-Project Development
- Partnership with local solar firms across the US, Latin America, and Africa
- Transparent project pricing and evaluation process
- Dedicated team of experienced specialists
- Exceptional customer service