PPA model for solar system
A solar power purchase agreement (PPA) is a financial agreement where a developer arranges for the design, permitting, financing and installation of a solar energy system on a customer’s property at little to no cost. The developer sells the power generated to the host customer at a fixed rate that is typically lower than the local utility’s retail rate. This lower electricity price serves to offset the customer’s purchase of electricity from the grid while the developer receives the income from these sales of electricity as well as any tax credits and other incentives generated from the system. PPAs typically range from 10 to 25 years and the developer remains responsible for the operation and maintenance of the system for the duration of the agreement.
Procedure for Solar Rooftop PPA
Step-1 Finalise the Power Purchase Agreement with the client
The clients signs a 10 years or 25 years power purchase agreement (PPA)
Step-2 Installation of Rooftop Solar PV system without no upfront cost
Once the agreement has been signed, developer will fund and construct the PV system
Step-3 Sale of electricity to the client
After completion, in accordance with the agreement, Developer will sell the client the energy generated on-site at the agreed price until the end of the contract.
Step-4 Handover the plant to the building owner
A developer will handover the solar Plant to the building owner after completion of the PPA tenure.