PPA

A solar power purchase agreement (PPA) is a financial agreement between a solar project developer and an energy consumer, such as a business or homeowner, that allows the developer to install a solar energy system on the consumer's property. The developer is responsible for designing, permitting, financing, and installing the system, and then sells the power it generates to the consumer at a fixed rate for longer tenure.

In a PPA, the consumer doesn't have to pay the upfront cost of the system, and instead pays a fixed monthly amount for the electricity it generates. PPAs can be beneficial for commercial and industrial customers because they can generate solar power at a lower tariff than the grid, and save on operational costs without any capital investment. PPAs can also be beneficial for homeowners because they can avoid leasing or purchasing the system, and only pay for the power they use. PPAs can range in length, but can be as long as the lifetime of the panels.