A PPA is an agreement between a solar power developer and a business. The business pays a lower amount for electricity that generates throughout the day. Once agreed, the solar developer will install a solar system on the rooftop of the business. The agreement will last for 8-10 years during this period the business agrees to buy the generated electricity off the solar developer at a reduced rate of 13c/kw. The solar developer keeps the system maintained for the length of the agreement. When the agreement is complete, the business keeps the system with no extra costs.
- No upfront costs
The solar developer covers all costs involved with installing the solar power system. Once installed, the business starts saving money on electricity bills.
- Lower power bills
Reduced to 13c/kw (on power generated)
- No maintenance
The solar developer looks after upkeep on the system for the life of the agreement.
- Maintain current electricity provider
No need to change electricity provider. Can still receive bills in standard cycle
- Set electricity costs for term of agreement
Once the agreement is set the cost of electricity is 13c/kw(or similar) for the agreement term. The only cost to go up is the Consumer Price Index (CPI) which sits at 1-3% per annum.
- Reduced risk
The developer is liable for the systems performance.