Under a Solar Power Purchase Agreement (Solar PPA) energy plan a business can receive a fully installed and maintained solar system on their property at no cost for the system. A Solar PPA simply allows a business to purchase green power without the cost of ownership, but provides the energy at a lower price than what you would otherwise be paying for mains power from your energy retailer.

Another benefit of solar power under a Solar PPA is you stay with your current energy retailer. The solar power generated from the system supplements your existing grid power and reduces the energy you need to purchase from the retailer and at a lower cost. For business a solar system can also help reduce high daytime loads, network charges and may also reduce peak demand charges

During the term of the agreement (generally 10-20 years) the system is fully maintained and warranted. At the end of the term of the agreement, the asset is then passed over to the owner at no additional charge.

Whilst Solar PPAs are relatively new to Australia, they are very common overseas, in fact in California over 75% of homes with solar are installed under a Solar PPA.

The Benefits of a Solar Power Purchasing Agreement (Solar PPA)

In addition to zero cost for the system some of the many advantages include:

  • Removal of the burden of ownership of a system
  • Electricity remains an operational expense
  • Savings on electricity costs
  • Built in redundancy – you maintain access to mains grid power.
  • Hedges electricity price rise risk
  • Full operating and maintenance servicing and 24/7 remote monitoring
  • Potential to easily expand and/or add on new technologies as required
  • Monthly payments per kWh of electricity delivered
  • Solar PPA electricity reduces your grid electricity purchases
  • Solar PPA electricity is charged at agreed prices for the duration of the contract
  • Flexible lease terms with extension and early buyout options
  • The system is maintain and manage throughout the solar PPA term
  • Provides future certainty over electricity expenditure

You simply pay for the energy you use from the system at a much lower rate than you purchase from your energy retailer and its fixed for the term of the agreement. Plus you don’t need to change energy retailers.

SPPA Savings Day1SPPA Savings Time