Services

Power Purchase Agreement

A solar power purchase agreement (PPA) is a contract where a third-party developer installs and operates a solar energy system on a customer's property at little to no upfront cost. The customer then buys the electricity generated by the system at a fixed, often lower, rate for a predetermined period, typically 10 to 25 years. The developer handles maintenance and takes advantage of tax credits, providing the customer with stable, low-cost electricity without the burdens of ownership.

• Low or No Upfront Cost: Customers avoid the high investment of purchasing and installing a solar system.
• Stable, Low-Cost Electricity: Enjoy a fixed electricity rate—often lower than utility rates—while protecting against future price increases.
• Developer-Managed System: The developer handles system design, financing, installation, operation, and maintenance throughout the contract term.
• Developer Benefits: Developers earn revenue from electricity sales, along with tax credits and incentives that help fund the project.
• Clear Contract Terms: The PPA specifies duration, pricing, and end-of-term options—such as extending the agreement, purchasing the system, or system removal.
• Risk Reduction: Customers avoid performance and maintenance risks, as these responsibilities remain with the developer.