Power Purchase Agreement

A power purchase agreement (PPA) is a contract between two parties, one who generates electricity for the purpose (the seller) and one who is looking to purchase electricity (the buyer). The PPA defines all of the commercial terms for the sale of electricity between the two parties, including when the project will begin commercial operation, schedule for delivery of electricity, penalties for under delivery, payment terms, and termination. A PPA is the principal agreement that defines the revenue and credit quality of a generating project and is thus a key instrument of project finance.
Posts about Power Purchase Agreement
  • Using Cash Incentives to Grow Your Solar Business

    … to consumers include a solar lease, or a Power Purchase Agreement, or PPA. Overall, it’s a win-win situation: the installer earns a healthy ROI, and the consumer is happy to be cutting monthly costs while simultaneously doing something positive for the environment that requires little to no extra effort. So why aren’t more people seeing the light, so…

    Matty Byloos/ RGR Marketingin Twitter- 5 readers -