Power Purchase Agreements (PPAs) offer the benefits of renewable energy without requiring you to invest in a new system yourself. They are essentially a form of financing that can provide electricity cost certainty, immediate cost savings and protection against future electricity price increases.
A PPA is an agreement between an electricity generator (who owns, operates and maintains the generation assets) and a customer who agrees to buy the electricity generated for a fixed price for an agreed PPA period (usually 15-20 years).
With Verdia PPA, you don’t need to invest in on-site solar PV. This is a good option for companies that don’t want to spend capital or invest time managing energy projects. Our PPA offers you the flexibility to buy-out the system at a fair rate at any point in time, if circumstances in your business change and you decide to own the system. If you don’t buy-out the system during the agreed PPA period, the ownership will automatically transfer to you at the end of the term and you can benefit from the system’s residual value.
There are different type of PPAs (including behind-the-meter, sleeved and synthetic/virtual offsite structures) which come with their own benefits and risks.