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PROCUREMENT
Power Purchase Agreement
What is a PPA?
Power Purchase Agreements are an alternative to traditional finance models. Rather than owning, maintaining and operating a solar system, a business only purchases the power it generates. In its simplest form, a PPA is a contract to purchase energy.
The PPA defines all of the commercial terms for the sale of electricity between a business and Smart. This includes when the project will begin commercial operation, schedule for delivery of electricity, payment terms and buyout schedule. PPA terms are transparent and easy to understand.
A PPA provides all the environmental benefits of solar energy, no operational risk involved in maintaining a system and locked in energy pricing.
Want to lock in their energy costs at a fixed rate.
Prefer an off-balance sheet asset.
Avoid the long term risk of owning and operating an energy asset.
Are committed to reducing their carbon footprint.
