What is a PPA?

Power Purchase Agreements (PPAs)

Solar Professionals is one of only six solar providers to be appointed to the NSW State Government and Local Government Procurement panel to deliver Purchase Power Agreements (PPA) to NSW Government organisations and the only provider headquartered in a regional location.

 

We are preferred suppliers for the NSW Government to deliver Power Purchase Agreements (PPAs) and capex solar projects to government organisations, having been appointed to the DPIE and LGP PPA and Energy Services Panels. We are also the only provider headquartered in a regional location.

 

We are a Clean Energy Council Approved Solar Retailer meaning we provide our clients with confidence that we will act in compliance with (or beyond) relevant federal and state laws and regulations and will conduct our business in a professional and ethical manner.

Prices for traditional energy sources are notoriously subject to market variability, and PPAs can protect companies from that variability. Since solar energy generation requires only minimal maintenance costs after installation, buyers benefit from steady, predictable costs that can be specified up front in a PPA contract. This creates a winning scenario for businesses, whereby committing to low renewable energy prices via a PPA decreases risk from rising electricity prices in the future.


Signing a PPA is a great way to get ahead of your competitors, showcase your commitment to sustainability, and plan for risks while leveraging value for your organization.

 

Australia has some of the highest electricity costs in the world and purchasing a solar system represents a major investment.

 

Even if a company can afford a solar power system upfront, that capital has an opportunity cost. With a solar PPA, the capital that would have been used on the project is freed for other investments.

 

A Power Purchase Agreement (PPA) is a great option for businesses considering solar power. There is no upfront cost, and net savings are achieved from the first month of operation. A solar PPA also delegates maintenance tasks to the system provider, and the client company can focus on their core business.

How a Solar PPA Improves Cash Flow for Companies

Power bills are an unpredictable expense, since electricity tariffs are constantly changing. However, kilowatt-hour prices normally increase each year, and Australia has some of the highest tariffs in the world.

 

Due to the abundance of sunshine and the high electricity costs in Australia, the payback period of solar power is typically 3 to 5 years. This is just a small fraction of the typical service life of solar power systems. However, signing a solar PPA reduces the payback period to zero, while still offering long-term savings.

 

A solar PPA brings immediate savings, since the kWh price in the contract is lower than the electricity tariff offered by retailers. As a result, companies experience an immediate reduction of their total electricity costs. Even if a company still relies partially on the local grid, the average price of each kilowatt-hour is reduced thanks to the PPA. Just like the capital saved upfront with a solar PPA, the monthly savings can be used to cover other operating expenses, or they can be reinvested.

 

A solar PPA also specifies how electricity will be charged for the entire term of the contract, and there are no surprises. On the other hand, companies have no way to predict how local electricity tariffs will change over time. Signing a PPA is a great business decision.

How it works

A solar PPA allows businesses and organisations to access cheaper electricity without making a capital investment to purchase solar equipment. Solar Professionals sells the energy generated from the solar system to your business for an agreed price which can be significantly lower than the tariffs offered by energy retailers.

Pay $0 upfront

With a PPA, the solar system is installed for no upfront cost, so you start saving from day one! All you pay for is power. At the end of the contract term, your business will own the solar system outright with no payout cost and will benefit from all the free energy it produces for years to come. The PPA allows you to purchase the solar system duringthe contract period at an agreed pre-determined price.

No maintenance fees

Solar Professionals owns, maintains and operates the solar system installed at your business for the duration of the PPA term. This means you don’t have to worry about the hassle of maintenance or potential faults.

Electricity price certainty

A PPA gives you electricity price certainty for the PPA term, protecting you from grid electricity price increases. The agreement cuts out a large portion of the electricity supply chain and the associated charges. This allows us to offer exceptionally competitive electricity rates.