What is a Power Purchase Agreement (PPA)?

Your financial objectives can sometimes be met using a performance contracting model. By executing a Renewable Power Purchase Agreement (PPA), you can purchase the output of the system, without using your capital to purchase the system itself. Depending upon your situation, you may be able to purchase renewable power at a rate lower than you are currently paying to the local power company. Usually with a PPA the renewable energy Professional (or another third-party legal entity) retains ownership of the renewable energy system and sells power to you at a pre-determined price. This can result in tax savings and other financial benefits. These long-term agreements (usually 15 years) offer the ability to gain much of the strategic benefits of ownership, while saving up-front capital. Terms and conditions for Power Purchase Agreements vary so please consult with a renewable energy Professional to see what might work best for your situation. Our directory of renewable energy Professionals will indicate if a particular listed Pro offers PPA's.


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