Power Purchase Agreement


Why use a Power Purchase Agreement (PPA)

A fixed solar Power Purchase Agreement (PPA) tariff affords increased long term certainty for your business - which is critical in a time of uncertain and ever-increasing energy costs - providing enhanced budgeting and known costs. Our Power Purchase Agreement (PPA) may offer you a cheaper alternative to leasing the equipment. Instead of paying a fixed lease amount per month, you only pay for the amount of energy generated by the solar equipment.
Because the contract term is a little longer than a lease or loan (our standard term is 10 years) this allows for the capital used to build the system to be repaid over a longer period, and hence a lower cents per kW/h rate for you, meaning you may not need to wait to be net cashflow positive compared to a lease or loan. Plus we take the risk on the performance/maintenance of the solar system (lower generation would mean lower bills for you), even though of course all equipment is covered by manufacturer’s Warranties, meets Australian Standards and is installed by Clean Energy Council-accredited installers.

how Power Purchase Agreements work

National Solar Company will build a new solar system at the right size on your rooftop, at zero upfront cost to you.
The solar electricity generated by the system is used by you instead of grid electricity, and you are charged by us at an agreed tariff (cents per kW/h generated); we will bill you monthly.
Any revenue from solar electricity exported to the grid is yours and delivered via your grid retailer feed-in-tariff and billing arrangements .
National Solar Company will look after the solar system and take care of costs such as ongoing insurance and maintenance.
At the end of the fixed PPA term you can purchase the equipment at an agreed price or extend the term for a further agreed term, usually at a reduced cents per kW/h tariff. As well, National Solar Company buy-out prices can include them replacing the inverter, ensuring many more years of performance.

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