Solar PPA
Solar Power Purchase Agreements
A Power Purchase Agreement allows Solar to be installed on your site and funded by a third party, with you buying the Electricity the system generates.
How a Solar PPA Works
Under a Solar Power Purchase Agreement, a funder pays for the design, installation and ongoing maintenance of the Solar PV system on your roof or land. You provide the site and enter into an agreement to purchase the Electricity generated, usually over a long term.
Because the funder owns the system, the upfront capital requirement sits with them rather than with your organisation.
What to Consider
A PPA is a long-term commercial agreement. The important points to review are the length of the term, the price and any price review mechanism, responsibilities for maintenance and Insurance, what happens at the end of the term, and how the arrangement interacts with any lease on the building.
We help you work through these points so the agreement is properly understood before anything is signed.
Suitability
PPAs generally suit sites with substantial daytime Electricity use, suitable roof or ground space, and the ability to commit to a long-term agreement. We will tell you honestly if outright purchase or Asset Finance looks like a better fit.
We do not make savings guarantees. Any figures are only ever provided by the funder based on a site-specific assessment.
What's included
No System Purchase
The funder covers installation costs.
Maintained System
Ongoing maintenance sits with the system owner.
Long-term Agreement
Terms, pricing and exit reviewed carefully with you.
Expert Guide
Commercial Solar PPA Guide
A commercial Solar Power Purchase Agreement can allow a business to use electricity generated by a Solar system without purchasing the system outright. The contract structure matters as much as the installation.
How a Solar PPA is structured
A PPA normally involves a third party funding and owning the Solar system while the site agrees to buy the electricity generated under the contract terms.
The exact structure varies between providers, so the contract should be reviewed for pricing, responsibilities, term, performance assumptions and end-of-term arrangements.
Questions to ask before signing
Understand how the electricity price is set and reviewed, who maintains and insures the system, who owns the equipment and what happens if the property is sold or the lease changes.
Also confirm what happens if the business changes its electricity demand, expands the site or needs work carried out on the roof.
PPA compared with buying
Buying a Solar system gives the customer ownership of the asset, subject to the chosen funding arrangement. A PPA changes the commercial relationship because the customer is buying the generated electricity rather than the Solar equipment itself.
The right comparison should include the total commercial and operational implications rather than focusing on one headline figure.
Use independent commercial judgement
PPA proposals should be assessed against the site's real electricity usage, property arrangements and long-term plans. Any projected figures should be treated as project-specific estimates rather than guarantees.
Related Solutions
Explore related ASC services
These services often sit alongside this solution and can be reviewed as part of the same wider plan.
Common Questions
Questions about Solar Power Purchase Agreements
Straight answers to the questions customers commonly ask before getting started.
What is a Solar power purchase agreement?
A Solar PPA is a long-term agreement where a third party funds and owns the Solar system and the site buys the electricity generated by it.
Does a Solar PPA require the business to buy the Solar system?
No. The funder normally covers installation and retains ownership, subject to the terms of the agreement.
What should be checked before signing a Solar PPA?
Important points include the contract term, electricity price and review mechanism, maintenance and Insurance responsibilities, end-of-term arrangements and any interaction with a property lease.
Let's Find the Right Solution for You.
Whether you're looking to reduce energy costs, improve your technology, invest in solar or make your business more efficient, ASC Business Solutions can help.