Solar Power Generation Brokerage Contract

What is a power purchase agreement (PPA)?

A Power Purchase Agreement (PPA) refers to a contractual agreement between two parties, typically a power producer and a customer. The producer usually arranges the design, gains the necessary permissions and manages the installation of a solar PV system on the customer’s property at little to no cost.

Why do you need a power purchase agreement?

With power prices continuing to be increasingly unpredictable, a Power Purchase Agreement will bring your energy costs back under control, mitigating risks and ultimately improving your bottom line. HOW CAN WE HELP YOU? Find out more about how we can support your business. Our experts are always on hand to deal with your request.

What is open solar contracts?

As a response, the International Renewable Energy Agency (IRENA) and Terawatt Initiative (TWI) undertook a joint efort to simplify and streamline the contractual framework for solar power. The Open Solar Contracts initiative aims to unlock greater investments globally.

Are open solar contracts a good investment?

The Open Solar Contracts provide for a standard insurance package, but national regulations can have a very significant impact on the scheme to be implemented, with high cost consequences. The standardisation of insurance schemes is a key factor of bankability and risk management cost mitigation.

Should you switch to an energy agreement?

In our experience, switching to this kind of energy agreement often results in a five-fold return on investment due to the volumes of power that are traded.

What happens when a solar PV contract ends?

When the contracts come to an end the customer can choose to remove the system, extend the PPA or purchase the energy system. On-site solar PV generation can take the form of either a large-scale rooftop installation on a commercial or industrial (C&I) site, or a ground-mount installation on adjacent land.