What is a solar power purchase agreement (PPA)?

Homeowners and businesses engaged in solar power purchase agreements (PPAs) hosting third-party owned solar systems in states with SREC markets are able to reduce their costs of electricity by forgoing contractual ownership of SRECs associated with their systems’ output and enabling the system owner to sell the SRECs into the state SREC market.

What are solar policies & regulations?

Solar policies and regulations promote the widespread adoption of renewable energy sources, including solar PV systems, rooftop solar, and solar energy systems. These policies, implemented at local, state, and national levels by governments and regulatory bodies, provide a framework for developing and integrating renewable energy projects.

How important are power purchase agreements for solar projects?

Explore the critical role of Power Purchase Agreements (PPAs) in securing revenue streams for utility-scale solar projects, including their importance in project financing and risk mitigation strategies.

What is a retail solar PPA?

At its most basic, a retail solar PPA is a long-term contract to purchase power from a third-party owner and operator of a solar energy generation system.1 This contrasts with a “direct-ownership” arrangement, where the local government itself owns a solar project.

Can a PPA buy a solar project?

Buyer Options to Purchase the Project or Special Purpose Entity. Many utilities have shown a strong interest in owning solar energy projects. In PPAs, this interest often takes the form of an option to purchase the project or the entity that owns it on or after a specified date. Such options should be handled carefully.

What rights does a grantee have under the solar PPA?

Grantee has the right to collaterally assign its rights and interests under this Agreement to any Lender (as defined in the Solar PPA) under the Solar PPA.