Solar Power Purchase Agreement (PPA)

A Solar Power Purchase Agreement (PPA) is a financial arrangement in which a third-party developer owns, operates, and maintains a solar energy system, while a customer agrees to host the system on their property and purchase the electricity generated for a predetermined period. This agreement allows the customer to receive clean, renewable energy at a lower cost than traditional utility rates, without bearing the upfront capital costs or ongoing maintenance responsibilities associated with the system.

Under a Solar PPA, the customer benefits from predictable energy costs and reduced exposure to volatile energy prices. Additionally, PPAs can help businesses and homeowners meet their sustainability goals and regulatory requirements by ensuring a consistent supply of green energy. The developer, meanwhile, secures a long-term revenue stream from the energy sales, making the investment viable and attractive.

By entering into a Solar Power Purchase Agreement, both parties make a commitment to long-term sustainability and energy efficiency, contributing to the broader goals of reducing carbon footprints and combating climate change. This mutually beneficial arrangement supports the growth of renewable energy infrastructure and fosters a more resilient and sustainable energy future.