Solar Power Purchase Agreements (PPA)

Solar Power Purchase Agreement offers businesses across Australia an innovative way to install solar and reduce and fix their electricity costs. A PPA relieves the need for you to provide any upfront capital in accessing the benefits of solar power for your business.

With a PPA, the PPA Provider takes on full ownership and maintenance of the solar system on your roof. You only purchase the electricity generated by the solar system which is usually cheaper than you’re currently paying from the grid.

The key benefits of a Solar PPA:

No Upfront Capital Costs

The solar PPA Provider will own and maintain the solar PV system with $0 upfront costs. This allows you to free up capital to invest in your own organisation, and take advantage of cheaper, cleaner electricity straight from your roof.

No Technology, Service or Operational risks

Your solar PPA Provider will take care of all the operations and maintenance in relation to the system, with no cost to you. 

Electricity Price Certainty

A PPA will give you certainty in relation to the price of electricity generated from the solar system for the life of the contract. We’ll also give you options:

• A fixed price for the length of the contract with no increases.
• A lower starting price with an agreed escalation rate.
• CPI linked increases

We can provide you with various price options that suit your business’s needs.

Building Improvement and Green Ratings

A commercial scale solar power system can add significant value to a building. It can also greatly assist in achieving improved GreenStar and NABERS ratings.

Reduced Greenhouse Gas Emissions

It’s likely that a significant portion of your current electricity supply is sourced by burning coal and gas and transporting it hundreds of kilometres. Electricity generated under a Solar PPA is generated on-site and has no carbon emissions.

Other Benefits of Solar

There are other benefits of installing a commercial solar:

• Roof shading
• Reduced peak demand changes which can lead to lower electricity tariffs
• Green benefits for your brand

How does a Solar PPA work?

Firstly, Infinite Energy will perform a detailed assessment looking at your electricity consumption profile, your available suitable roof space (or ground) and your internal electrical infrastructure. We will then provide you with a recommendation in terms of the type of solar power system that would be suitable and pricing options from a PPA provider.

Once you decide on the most suitable options for your Solar PPA, you’ll enter into an agreement to buy the electricity from the system for an agreed period of time at an agreed rate. Infinite Energy will project manage installation of the solar system. Once installed, commissioned and producing electricity, you’ll be sent a monthly account for the electricity produced by the system from your PPA provider (every unit of electricity you buy from the solar system is one less unit you’ll need to purchase from the grid). 

A Solar Power Purchase Agreement Checklist

There are number of items to check with a Solar PPA provider before proceeding with them:

• Are they licensed to sell electricity in your state?

Providers require an “Individual Retail Exemption” from the Australian Energy Regulator in the Eastern States and an Electricity Retailer’s License in Perth and Western Australia if the solar system is connected to the grid.

• Do they have significant experience in Commercial Solar?
• Are they able to provide information on the effect on your current Electricity Tariff by installing Solar?

If you’d like to discuss whether a Solar Power Purchase Agreement is right for your organisation, get in touch with one of our specialist Energy Consultants on 1300 074 669 or request a call back.