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What is a solar Power Purchase Agreement?

A solar Power Purchase Agreement or PPA is a long term contract to purchase electricity generated by a solar panel system installed at your commercial or industrial premises.

Features and benefits include:

  • Monthly payments per unit electricity delivered
  • Solar PPA Electricity reduces your grid electricity purchases
  • Solar PPA Electricity is charged at agreed rates throughout the term
  • Flexible lease terms between 10 – 20 years
  • Extension and early buyout options
  • System Maintenance/management included throughout the term
  • Provides future certainty over electricity expenditure

What is a Solar Operating Lease?

A Solar Operating Lease is a contract to pay a fixed monthly amount for consuming electricity generated by a solar power system on your commercial or industrial premises. Some of the benefits include:

  • Fixed monthly payment for all electricity delivered
  • Solar Leasing reduces your organisation’s dependence on the grid
  • System generation guarantee
  • Flexible lease terms between 7 –15 years
  • We maintain and manage the system throughout the term
  • Provides future certainty over electricity costs

Solar Leasing or PPA?

The major differences between a solar lease and power purchase agreement is the duration of the arrangements and pricing model. With a PPA, you make monthly payments per unit of electricity delivered. With a lease, there are predetermined payments, regardless of how much electricity your business consumes.

While both a PPA and a solar lease arrangement involve zero capital outlay, there are a number of aspects to consider to gauge the best solution for your business.

Get in touch with us and one of our team will speak to you about what we can do to make you more confident about getting into solar.

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