POWER PURCHASE AGREEMENTS (PPA)
A Power Purchase Agreement is an agreement between a client and the energy service provider in which the client agrees to make available his/her property to host the energy generation system as well as the option to purchase the energy which is generated from the system. Power purchase agreements range from 8-20 years, during which predictable and stable increases in electricity tariffs are guaranteed. Where applicable, additional generated energy can be sold back to the utility company. The roles of each participant to a typical Solar PV Power Purchase Agreement is set out in the image below.