Power Purchase Agreements
What is a PPA?
We’re often asked, “What is a PPA?” In general terms, a power purchase agreement (PPA) is a long-term agreement to purchase power from an equipment owner (in our case PPA Partners) at a contracted price. PPAs are sometimes called Solar Services Agreements. The parties to the contract are the buyer/equipment host and the seller/Independent Power Producer (IPP).
It is the buyer’s responsibility, as equipment host and electricity customer, to purchase an agreed upon amount of solar electricity over a fixed term (typically 15-30 years). The buyer provides the equipment site – a roof, a parking lot, or land, where the solar generating equipment is installed.
Steps in the Process
As the electricity seller, PPA Partners arranges for the design, purchase and installation of solar system. We also own, operate and maintain the solar equipment. Here's how it works.
Why a PPA?
Our PPA’s offer businesses and institutions many benefits including providing a way to take advantage of the economics of solar power without having to expend significant capital outlays. They also allow customers to use solar power without having in-house expertise. There’s no burden to operate or maintain unfamiliar equipment.
Who Has a PPA?
Solar PPAs have been used for years by corporations like Google, Fedex, WalMart and Macys, and institutions including colleges, universities, and the U.S. Postal Service. See if your firm is a good fit.
Protect the Environment
You’ll be making a significant impact on the reduction of greenhouse gas emissions. Installing just 100kW of solar is the equivalent of planting approximately 100 trees.
Go Green for Free
The publicity and goodwill benefits of using clean solar energy are intangible, but in today’s competitive economy, consumer confidence matters.
The PPA market is rapidly expanding. It offers electricity users a low cost way to obtain clean solar energy while also offering investors reliable cash flow opportunities.