A Power Purchase Agreement (PPA) is a long term legal contract between an electricity generator and a purchaser of energy and/or energy capacity. Such agreements play a key role in the financing of electricity generating assets.

Commercial Market and Applications

Part of the development of renewable energy technologies depends upon enabling new and creative means of financing the initial investment of an alternative energy system. A PPA with a medium to large photovoltaic system can prove to be winning solution for organizations who do not want to make the initial investment. For solar electric systems with a nameplate capacity in excess of 250 kW, PurePoint Energy is able to arrange a PPA.

One party pays for and owns the alternative energy producing system that generates power on the commercial property for the commercial energy consumer. The consumer then pays the system owner for the electricity generated at a discounted rate than the rates charged by the local utility. The contract agreement involves drawing up a clear definition of the output of the generating asset and its associated revenue streams. The system owner benefits from the tax and renewable energy credits it receives for owning the system, and the energy user benefits by paying for electricity at a lower rate than they normally would.

Industrial Utility Scale Markets

PurePoint Energy is skilled and is able to coordinate and negotiate PPAs between investors and utilities for the construction of utility scale renewable energy power plants. Our experience will insure a winning solution between investors, utilities and our clients. To learn more about how your commercial project can install alternative energy solutions without having to pay for the system, contact PPE in our Your Needs.

If you are interested in investing in the development of photovoltaic commercial projects contact PPE through our Become a Partner platform.