77 Anderson Road, Mortdale NSW 2223

Solar Power Purchase Agreements (PPA)

Quality solutions by Certified Engineers

What is a Solar Power Purchase Agreement (PPA)?

A Power Purchase Agreement, or otherwise known as a PPA, is a finance mechanism where we would design, engineer, install and finance a commercial solar system for your business entirely. This means that under a Power Purchase Agreement, our team will install the entire solar system with no upfront cost. As the solar system generates clean energy on your roof and supplements the electrical demand of your building, the energy generated from the solar system is then sold back to you at a rate typically 30-60% lower than your standard rate by your energy retailer. As the owners of the system, we take on all the liability of monitoring and maintaining the system for length of the PPA term. With a Power Purchase Agreement, you can instantly reduce your business running costs and not worry about the payback period as you are cash flow positive from day 1!

How does a Power Purchase Agreement (PPA) benefit my business?

ASV Solar has worked alongside one of Australia’s largest renewable energy funds to develop our own bespoke Power Purchase Agreement solution; offering the shortest and most competitive rates available in the market. Under our Solar PPA scheme you enjoy the benefits of:

  • No change to your current retail contract
  • Zero upfront investment required
  • Guaranteed generation
  • No hidden costs
  • No maintenance (we take on the risk)
  • Hassle free
  • Available to tenants and landlords
  • Terms as short at 5 years up to 25 years

This is very different to a lease; with a Power Purchase Agreement there is no liability to your business. We take on the risk of installation, maintenance and insurances. As part of our contract, all responsibilities with applications to council and the electricity grid are taken onboard by our solar engineering team, as well as completing a full structural review of your building to ensure it can withstand the loads of a commercial solar system. It is also our responsibility to ensure the solar system is performing according to simulations; essentially if there is any shortfall in generation, we take on the losses. Hence, we would only use the highest quality available product to ensure there is limited risk and downtime over the lifetime of the system, and have a very rigorous maintenance program which includes bi-annual cleaning, preventative maintenance audits and generation reports. We take control of the project from the preliminary engineering designs all the way through to commissioning and maintenance with our own internal crew of solar engineers, project managers and in-house commercial solar installation team.

How long is a Power Purchase Agreement (PPA)?

The length of the Power Purchase Agreement term can be adjusted based on the savings you want to receive; typically, the length of the term ranges from 5 years to 20 years. The longer the Power Purchase Agreement term, the larger the savings will be compared to your current electricity rates. After the agreed term has been completed, your business will take full ownership of the commercial solar system and enjoy the full financial savings of the solar system. At any point during the Power Purchase Agreement, you can choose to buy-back the commercial solar system for an agreed rate and take ownership of the solar system thereafter.