A Power Purchase Agreement lets you buy clean power at a fixed, below-utility rate with zero upfront capital. Here is how the structure works and why it protects your business from rate volatility.
A Power Purchase Agreement (PPA) is a long-term contract in which a developer finances, builds, owns, and operates a solar or storage system on your site, and you simply pay for the electricity it produces — typically at a rate 25–40% below what your utility charges. There is no upfront capital, no maintenance burden, and no technology risk for the host.
The developer recovers its investment through the energy payments you make over the contract term. Because the system is sized to your actual consumption, you only pay for power you would have purchased anyway — at a lower rate. At the end of the term, most agreements offer the option to renew, purchase the system, or have it removed.
PPAs work best for facilities with annual electricity spend above $400,000, stable daytime load, and a roof or land suitable for solar. If that sounds like your operation, our team can model your specific savings before you commit a dollar.