A Solar Power Purchase Agreement (PPA) is a legal contract between a solar energy provider (often a solar developer or energy company) and a customer (typically a business, government entity, or institution) who agrees to purchase electricity generated by a solar photovoltaic (PV) system. The PPA outlines the terms and conditions of the solar power arrangement, including pricing, duration, and other important provisions.
Before entering into a Solar Power Purchase Agreement, both parties should carefully review and negotiate the terms to ensure they align with their specific needs and expectations. Legal counsel and technical experts may be consulted to evaluate the contract and ensure compliance with applicable laws and regulations.
Financial Predictability: It provides the customer with a predictable and potentially lower electricity rate over the contract term, helping to manage energy costs.
Sustainability: It supports the adoption of clean, renewable energy sources like solar power, contributing to environmental and sustainability goals.
Legal Protection: A well-structured PPA offers legal clarity and protection to both the solar energy provider and the customer, outlining their respective rights and responsibilities.