Definition

A solar Power Purchase Agreement, or PPA, is an agreement between a specific energy provider and a customer to purchase on-going solar power at a long-term rate, usually equal to or less than market rates.  The solar PPA provider will install and maintain the solar facility on the customer’s rooftop or property.  As a solar PPA customer, you pay for solar power, not the investment of the solar equipment or installation.

Is a solar PPA right for me?

If you own your building, you are the ideal candidate for a solar PPA.  Solar PPA can work for long-term leases with some specific changes to the terms and conditions.  Our PPA will accommodate systems from 50 kilowatts up to several megawatts of power.  Our PPA serves virtually any organization, including industrial companies, schools, municipal and state government agencies, high-tech companies, non-profit sectors, etc. 

Term

Our PPA generally is on a 20-year term.  However, the term can be modified under certain circumstances.

Rates

The PPA’s electricity rate schedule is determined at the inception of the agreement.  While terms vary from one PPA to another, we can often reduce upfront energy costs for our customer.  The PPA terms also include an annual escalation rate, which determines increases to solar-generated energy costs over the term of the agreement.  As a customer, you only pay for the solar electricity generated at your site.

System Improvements and Upgrades

Our PPAs include provisions for system upgrades to increase energy capacity and efficiency.