Solar Power Purchase Agreements
Power purchase agreements (PPAs) can help you afford a solar system for your business while increasing your ROI and savings in the long run. These are increasingly being used for the supply of solar power to businesses that want to take advantage of the benefits of having an onsite solar array without the need to purchase a system.
What is a PPA?
PPAs are, essentially, legal agreements between a provider and a purchaser for the supply and sale of energy. In the role of the purchaser, businesses entering into commercial solar power purchase agreements and contribute onsite space (typically, rooftops) for the mounting of solar panels. Their PPA provider takes on full financial responsibility for the solar system, including its installation and maintenance, and retains ownership of it. The purchaser buys electricity generated by this system from the provider, at agreed rates for an agreed timespan.
Key Benefits of PPAs
By entering into a solar PPA, your business can enjoy benefits of an onsite system, such as lower energy bills, reduced exposure to energy price volatility, green brand benefits and more – all without having to invest your own funds in the solar infrastructure.
Your PPA provider owns and maintains the solar PV system on your rooftop. As the owner, your PPA provider will also take care of all operational and maintenance costs associated with the system. This translates to virtually no financial risk for your business.
How does it work?
In partnership with Ovida, Cherry can create low cost solar electricity for your business right on your roof!
- Cherry will install your new solar PV system at no upfront cost.
- Ovida will own, operate and maintain the system over the contract period – so you can focus on what really matters.
- Your solar PPA is calculated based on how much solar electricity is generated and metered through a separate solar meter. No repayments – you only pay for the energy that you are generating.
- The solar PPA bill and the now reduced grid electricity bill together are typically significantly lower than your previous bill.
Who can apply for PPAs?
Local and State Government PPAs
Certain local and state owned buildings are eligible for PPAs while others are not. Talk to us regarding your eligibility.