Power Purchase Agreement
What kind of business does an onsite PPA work well for?
Onsite solar PPAs are ideal for large businesses that operate during daylight hours and that typically require big or complex systems. They are suited to both building owners and tenants.
A PPA best suits businesses that:
Have minimum monthly power bills of $2,000 or more & have consistent loads
Prefer to outsource the maintenance and upkeep of the system & require solar systems sized over 70kW
Want to lock in their energy costs at a guaranteed low fixed rate
Want to avoid the long-term risk of owning and operating a renewable system
Prefer an off-balance sheet asset
Are committed to cutting their carbon footprint
PPAs are typically in place for 7−30 years, so they are best suited to businesses that are well established. Examples include aged care, shopping centres, schools, cold-storage facilities, distribution centres, supermarkets and agricultural businesses.
Advantages of a Solar PPA:
- Reduce your business’s carbon footprint
- Zero upfront cost
- Long term savings on electricity costs
- Improve cashflow
- Cashflow positive from day 1
- Predictable energy pricing
- Can be 50% cheaper than grid electricity rates
- No system performance or operating risk
- No liability for system
- Electricity remains an operational expense
- Remain grid-connected – built-in redundancy
- Full O&M servicing + 24/7 remote monitoring
- Potential to easily expand and add new technologies
- Option to purchase the system at the end of the term (usually equal to two monthly instalments)
- Enhance branding
Why choose a PPA over a Payment Plan?
If you’d like to cut your energy costs without the responsibility of owning and maintaining a large solar system, an onsite PPA could be the best option for you. Unlike other PPAs that only suit owners, the Smart Ease PPA is suitable for both tenants and owners.
PPAs suit larger businesses that operate mainly during daylight hours, have high energy needs and prefer a fully serviced solution. You’ll get accurate sustainability data for reporting, and upgrades to your equipment as technology improves.
How does an onsite PPA work?
Once you confirm your solar project and sign your PPA, your solar system will be installed at no upfront cost to you. You then buy the power generated by the solar panels at an agreed low rate (approx. $0.09−$0.15/kWh) for the duration of your PPA.
Your PPA provider takes care of all repairs, maintenance and insurance. All you have to do is continue buying energy from your provider at a lower rate than you would from the grid!
