Power Purchase Agreements (PPA)

A Power Purchase Agreement (PPA) is a contract between a renewable energy provider and a buyer, usually a utility or large company. It outlines the terms for generating and purchasing electricity over a specified period, often 10-25 years. The provider builds and operates the renewable energy system (like solar panels), then sells the electricity at agreed rates. This arrangement helps finance renewable projects, offering the buyer stable energy costs and supporting clean energy development, while providing the provider with revenue and a way to recover investment costs.