Power Purchase Agreements
At Go Green Solar Group, we offer Power Purchase Agreements. Also known as a PPA, it provides protection against the market’s unpredictability.
Power Purchase Agreements
At Go Green Solar Group, we offer Power Purchase Agreements. Also known as a PPA, it provides protection against the market’s unpredictability.
Unlike many other companies, Go Green Solar Group keep every aspect of the PPA inhouse from design, funding, installation and maintenance. You only deal with us.
We will fund the entire installation of your commercial solar PV system and give you control over your long-term financial planning. Lock in low, fixed rates and move closer to achieving your sustainability goals.
For more information about our Power Purchase Agreements, contact us on 01524 965050.
What is a PPA?
A Power Purchase Agreement refers to a contractual agreement between two parties; the seller who generates electricity and the buyer who agrees to purchase the electricity. A PPA enables you to benefit from solar PV whilst preserving your capital.
The buyer agrees to purchase renewable energy from a specific asset, within the boundaries of a pre-agreed pricing framework from the seller, known as a fixed or flexible pricing structure. Power Purchase Agreements are especially useful for companies that require large volumes of electricity, and suppliers seeking to buy energy and resell onto the retail marketplace.
Power Purchase Agreement contracts vary. Each contract is tailored to the requirements of both parties, with longer-term contracts ranging from 20-30 years. Whilst under contract, the seller is responsible for the maintenance and operations of the system. Once the contract ends, you can choose to remove the system, extend the PPA, or purchase the energy system.
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For more information about our Power Purchase Agreements
How do on-site PPAs with Solar PV Work?
On-site solar PV generation can either be a rooftop installation, or a ground-mount installation on adjacent land. Commercial and industrial energy consumers may also be able to contract directly with nearby renewable generators. However, this is more complex and therefore rare.
For a successful PPA installation, the following requirements are:
The consumer’s electricity demand profile must be sufficiently over 400,000 kwh per year, consistent, and time-matched for the solar PV generated electricity to be well suited to meeting it. For example, a cold storage facility with stable round-the clock demand, or a manufacturing plant with its highest demand during daylight hours.
A suitable physical location must be available to host the site on-site or near site.
Only available on a box profile (trapezoid) tin roof style.
An affordable connection to the local distribution grid must available.
The consumer must be deemed sufficiently credit-worthy to facilitate the financing of the generator’s assets.
What are the Benefits of PPAs?
PPAs can produce significant benefits for both parties. This includes:
Immediate Reduction in Energy Costs: Onsite PPAs enable large electricity users to benefit from buying their electricity from a renewable electricity source onsite or near-site. This avoids both wholesale price instability and many of the “non-commodity” costs associated with buying electricity through the grid. Solar PPA’s provide a fixed cost for electricity for the duration of the contract.
No Capital Investments: The energy consumer does not have to pay upfront for the cost of developing the generator themselves. This means that the customer benefits from cost saving from day one of the contract and continue to benefit for the duration of the agreement.
Limited Risk: Under a PPA, customers can benefit from greener energy and implement more sustainable business practices with very little risk. The sellers are responsible for the maintenance of the solar panels, so the customer does not have to worry about equipment failure.
Choose Us for Commercial Solar Panel Installation
For more information or advice about Power Purchase Agreements, contact Go Green Solar Group. Call us on 01524 965050. You can also send any enquiries via our contact form.