Solar Power Purchase Agreement
A solar power purchase agreement (PPA) is an operating agreement between a solar energy provider such as IES and a customer, typically a business or government entity, where the provider (IES) installs a solar energy system on the customer's property and the customer agrees to purchase the solar energy generated by the system over a set period of time, usually 15 to 25 years.
Under a PPA, the solar energy provider retains ownership of the solar energy system and is responsible for maintaining and operating the system, while the customer benefits from lower energy costs and a reduced carbon footprint.
The provider also typically receives financial incentives, such as tax credits or rebates, for installing the solar energy system.
The customer pays for the solar energy generated by the system at a fixed rate per kilowatt-hour, which is typically lower than the price they would pay for electricity from the grid. The fixed rate is typically set at the beginning of the agreement and may increase over time, but it is still typically lower than the rate of electricity from the grid, providing long-term savings for the customer.
Capability
Intelligent Energy Solutions (IES) is a leading solar energy organisation that specializes in providing solar energy solutions to a wide range of customers across Australia. Our primary focus is on operating solar PV systems under Power Purchase Agreement (PPA) agreements in the A.C.T, NSW, and QLD, with a proven track record of delivering high-quality solar energy solutions to our customers.
Our current customers include a range of organizations such as embassies, non-profit organizations, shopping centres, childcare centres, age care facilities, and government organizations. We have a wealth of experience in working with organizations across a wide range of industries, and we pride ourselves on our ability to tailor our solar energy solutions to meet the specific needs of each customer.
We offer a comprehensive range of solar energy services, including PPA proposal preparation, installation, maintenance, and monitoring. We have a team of highly skilled and experienced solar energy professionals who are dedicated to delivering the highest quality solar energy solutions to our customers.
One of the key advantages of working with IES is our ability to prepare PPA proposals for your organization anywhere in Australia. Our team of experts can work with you to assess your energy needs, design a solar energy system that meets your specific requirements, and prepare a PPA proposal that is tailored to your organization.
Benefits
Reduces the cost of ongoing power bills
- Immediate savings with an SPPA rate that is lower than the grid rate
- Solar in general is ideal for reducing high daytime loads, network charges and may also reduce a peak demand charge, which is often a significant component of a power bill
Fixed rate or CPI increases throughout agreement term
- Traditional utility grid rates have been increasing and are predicted to continually increase at rates well above inflation. Hedge against future electricity costs rises by locking in lower fixed SPPA rates at annual fixed rate or CPI increases during the agreement
No upfront capital expenditure required
- Removing the upfront financing burden allows funds to be focused on core activities
No operational maintenance or service risks
- The PV system is maintained and serviced by IES throughout the term length of the PPA at no cost to your organisation
- Solar power generation can be relied upon throughout the life of your agreement All IES systems come with a leading industry warranty guarantee on performance
Economically viable social responsibility
- Although reducing carbon emissions and saving money are motivating factors for the procurement of power via a solar PPA, removal of capital outlay also provides an easier path for a business to install larger systems
- Retailers, such as ACTEWAGL, offer renewable energy consumption as a premium to ordinary grid rates. An SPPA offers renewable energy at a discount to grid rates
Visible brand positioning as a “green” organisation
- Hosting a solar panel system is a visible demonstration of your organisations commitment to the environment, bringing both social and economic advantages to your organisation and creating a positive impression on your customers and employees
