03 Oct What is a PPA or Power Purchase Agreement?
Here we take a brief look at what is a PPA agreement and what purchase options are available to you.
A PPA is a Power Purchase Agreement. This is contract you enter into with Greentricity to protect both parties. We commit to supply, maintain and fix costs for your solar power, and you commit to buying the solar energy from us for the duration of the contract. Generally PPA agreements are over a longer term.
The benefit our customers by controlling costs by fixing the rate charged per (Kw), Kilowatt of energy consumed. The second advantage is all costs for equipment and installation are covered by Greentricity.
Can I purchase the solar array hardware if I enter a PPA agreement.
Yes, in a PPA, you will have the option to purchase the system down the line. If you’ve entered into a commercial PPA agreement with Greentricity (Power Purchase Agreement), this means Greentricity own the solar array and you are just purchasing the electricity you use.
This means you have avoided using your own capital, but have the benefit of the carbon free electricity and lower kWh rates. In time, it might make sense to the business to own the solar array at which point we will come to a new arrangement with you