What is a Power Purchase Agreement (PPA)?
Some organizations (particularly non-profits) choose to go solar through a financing mechanism known as a Power Purchase Agreement or PPA. PPAs are long-term agreements to buy power from a solar investor or development company that finances and owns the solar system and then sells the end-user the electricity generated by the system, usually at or below market rates. After the system has been depreciated, this third-party solar developer can sell the system to the organization at fair market value. In many situations both parties can see very good return on investment. Sunsense has been working with numerous financial partners on crafting PPA’s from 50kW to 2MW.
