Solar System Power Purchase Agreement

Duration: Solar leases for residential buildings usually have a term of 20 to 25 years. Commercial solar leases can be adapted and typically range from 7 to 20 years. Some PPAs will increase the price per kWh for the duration of the agreement to support inflation. Some offer a fixed price that does not change for the duration of the contract. Some customers prefer a longer deal to make sure that price is lower (and is lower). The installer designs the system, specifies the corresponding system components and can perform follow-up maintenance over the lifetime of the photovoltaic installation. To install the system, the solar service provider can deploy an in-house team of installers or have a contractual relationship with an independent installer. Once the SPPA contract is signed, a typical installation can usually be completed in three to six months. Financing: A solar power purchase agreement has advantages in terms of accessibility and immediate savings as well as other benefits described above, but there are also advantages when purchasing a solar module system. Be sure to consider all your options before you commit. There are several discounts and incentives for Australian companies that use solar energy. For example, commercial systems smaller than 100 kW are allowed for the Small-Scale Technology Certificates (STC) program, which reduces costs based on how much electricity you plan to produce over the next 13 years.

The distribution company serving the host customer shall provide a connection between the photovoltaic installation and the grid and shall continue its electricity service with the host customer in order to cover the periods during which the system produces less than the electricity needs of the site. Some states have net-metering requirements that offer a method of credit for customers who produce electricity locally that exceeds their own electricity consumption. In most countries, the distribution company will credit the surplus electricity from the photovoltaic installation, although the compensation varies considerably from one Member State to another. To learn more about solar power purchase agreements or even follow an ECA, contact YSG Solar at 212.389.9215. Property taxes: As mentioned in the “Benefits” section, a solar panel installation can increase the value of the property. But it can also raise property taxes. .