A solar electricity sales contract (PPA) is a financial agreement whereby a developer organizes the planning, approval, financing and installation of a solar installation on the land of a client too little or no cost. The developer sells the electricity produced at a fixed price to the host, which is usually lower than the local distribution company`s retail price. This decrease in the price of electricity is used to compensate for the purchase of electricity from the grid by the customer, while the developer receives the revenues from these electricity sales as well as all tax credits and other incentives of the system. PPAs are typically between 10 and 25 years old and the developer remains responsible for the operation and maintenance of the system for the duration of the agreement. At the end of the PPA contract term, a customer may be able to extend the PPP, have the system removed from the developer or purchase the solar installation from the developer. To buy the model agreement or if you have any questions, please email us an email to [email protected]. The utility, which serves the host customer, provides a connection of the photovoltaic installation to the grid and continues its electrical service with the host customer to cover periods during which the system produces less than the electrical needs of the site. In some countries, net meter requirements apply, which provide a credit method for customers who produce electricity on site exceeding their own electricity consumption. In most countries, the distribution company will credit excess electricity from the photovoltaic installation, although compensation varies considerably depending on the national police. Systemshosts may sell and purchase in their place RECS from other geographically eligible green electricity resources, in order to assert environmental rights. This process is called REC-arbitration and allows the facility operator to capture the financial benefits of solar RECS while meeting the environmental partnership requirements. For an in-depth discussion of UCs, read the EPO White Paper on UCs.
The contract model contains a customer offer and contractual terms and meets the requirements of the Clean Energy Council Approved Solar Retailer program. The draft agreement is of exceptional value and could save your business a lot of time and money.