Power Purchase Agreements

Corporate and behind-the-meter Power Purchase Agreements (PPAs) offer the benefits of renewable energy without requiring you to invest in a new system yourself.  They are essentially a form of financing within the solar industry that can provide electricity cost certainty and hedge against future electricity price increases.

A PPA is an agreement between an electricity generator (who owns, operates and maintains solar PV or wind generation assets) and a customer who agrees to buy the electricity generated for a fixed price for an agreed PPA period.

With PPA’s you don’t need to pay for on-site solar PV [link to new on-site commercial solar PV page] or other renewable energy assets.  So, they are a good option for companies that don’t have the capacity or desire to spend capital on energy projects or when there is insufficient roof or ground space for an on-site generation.

There are different types PPAs (including behind-the-meter, sleeved and synthetic/virtual structures) which come with their own benefits and risks.

To find out more about PPA’s and how you could benefit contact Thimo Mueller.