Solar Power Purchase Agreements (PPAs) are a popular and a cost effective means of solar energy without the upfront costs of installation and maintenance, making it an easy option to choose. Fortunately, there are different financing options available for implementing solar energy solutions for your business, and SafEarth can help you find the best one for your needs.

SafEarth is a platform that connects businesses with the best renewable energy solutions in their area. It helps you compare quotes, choose vendors, and manage the entire project from start to finish. SafEarth also helps you explore different financing options for your solar energy project, such as loans, leases, and power purchase agreements (PPAs). Here are some of the things to consider before choosing Solar PPA.

Structure of a Solar PPA:

In a solar Power Purchase Agreement, a third party investor installs the solar system on your roof. They pay the upfront cost and provide operation and maintenance for complete tenure of the PPA. As a consumer of that power, you now agree to purchase the power produced from the plant for a fixed period of time (usually in the range of 15-25 years). This helps the investor in making a reasonable return on investment on the costs incurred for the solar system. The rate at which you pay for this electricity is usually 30 – 40 % cheaper than the conventional grid power. This ensures that you are able to save money by reducing your electricity costs. 

Below are the things to consider while choosing the PPA : 

1. Financial Implications:

  • Savings and Benefits: Evaluate potential savings on electricity bills over the PPA term and inquire about any tax incentives, rebates, available in your region.

2. Contractual Terms and Conditions:

  • Term Length: Consider the length of the agreement. Longer terms may offer more stability and cheaper electricity prices.
  • Performance Guarantees: Ensure the PPA includes clauses guaranteeing solar generation, system’s performance and uptime.

3. Maintenance and Responsibilities:

  • Ongoing Maintenance: In a PPA operation maintenance is in the scope of Power Producer till the PPA term, consumer should get a clear understanding of any responsibilities which may lie with them.
  • Insurance and Liabilities: Clarify insurance coverage and liabilities in case of damage or accidents related to the solar system.

4. Exit Strategies:

  • Early Termination: Review terms for terminating the agreement.
  • Transfer of Ownership: Assess if there’s an option to transfer the PPA to a new property owner.

5. Regulatory and Environmental Factors:

  • Regulatory Compliance: Ensure the PPA complies with local regulations, interconnection requirements, and environmental standards.
  • Environmental Impact: Consider the environmental benefits of solar energy


Remember, the right Solar PPA should not only benefit you but also align with the environment, ensuring a win-win for both. At SafEarth, we are passionate about helping the world transition to renewable energy. This is why we have created the most customer centric platform for the adoption of clean energy. Sign up on our platform SafEarth today, to get the best value out of your switch to clean energy.


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