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Home Solar Agreement

A Power Purchase Agreement, or PPA, is a long-term contract to buy power from a specific energy provider. Solar PPAs are agreements between a provider and a customer to purchase on-going solar power, usually equal to or less than market rates.

PPA Benefits

The benefits of the PPA model continue to increase as the commercial solar market matures and the financing market becomes more liquid:

No Up-Front Financial Committment

  • Development and contruction risk/cost financed by the service provider/developer
  • Client makes no upfront payments and monthly utility style payments only due once the project is "in-service"

Outsource Design/Development Complexity and Ongoing Maintenance

  • Larger scale solar projects require careful design and engineering to ensure good fit with customer needs - electricity demand patterns, location of the site, utility tarrifs, solar module and inverter availability and system configuration need to be taken into consideration
  • Operations and Maintenance (O&M) agreements ensure the efficient long-term management of the site
  • Aligned interests - service provider has vested interest in ensuring system works at maximum efficiency for the life of the solar array 

Hedge Against Rising Energy Prices

  • PPA's can extend for up to 25 years, thereby enabling the customer to lock into energy prices
  • Significant flexibility available around price escalators

Contract Simplicity

  • PPA documentation becoming more simple/established - customers purchases 100% of electricity for a pre-determined period (10-25 years) at a negotiated price
  • Only other significant document (for the customer) is a ground lease to enable the PPA provider to build and operate the on-site solar array


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