Power Purchase Agreements (PPAs)

A Solar Power Purchase Agreement, or PPA, allows a property owner to use solar electricity generated on-site without purchasing the solar system outright at the beginning of the project. Under a PPA arrangement, UTICA® can design, install, own and maintain the solar PV system, while the customer purchases the electricity generated by the system at an agreed rate. This can reduce the need for upfront capital while still allowing the property to benefit from on-site solar generation.

What Is a Solar PPA?

A Solar PPA separates solar system ownership from electricity consumption.

Instead of buying the solar equipment, the customer enters into a long-term agreement to purchase the electricity generated by the solar system installed at the property.

The commercial structure, electricity rate, contract duration, maintenance responsibilities and end-of-term arrangements are defined within the individual PPA agreement.

Unlike a conventional equipment purchase, the focus is on the electricity produced by the system rather than immediate ownership of the solar asset.

How a PPA Works

1. Site And Energy Assessment: UTICA® reviews the property, available roof area, electrical infrastructure and electricity consumption profile to determine whether a PPA is suitable.

2. Solar System Design: A solar PV system is designed around the site's available installation area and expected energy requirements.

3. Commercial Proposal: The proposed electricity rate, agreement period, system ownership structure and responsibilities are set out for review.

4. Installation And Commissioning: Once the agreement is finalised, the solar system is installed and commissioned at the property.

5. Purchase Solar Electricity: The customer purchases the solar electricity generated by the system according to the agreed PPA terms.

6. Ongoing System Management: UTICA® remains responsible for the solar asset according to the agreement, which may include monitoring, preventive maintenance, repairs and other operating responsibilities.

Benefits of a Solar PPA

Reduced Upfront Capital Requirement Because the solar system is financed and owned under the PPA structure, the customer may avoid the large upfront capital requirement associated with purchasing a solar system outright.

Solar Electricity Without Immediate System Ownership Customers can benefit from on-site renewable electricity while UTICA® retains responsibility for the solar asset during the applicable agreement period.

Ongoing Maintenance Responsibility Depending on the agreement, UTICA® can remain responsible for monitoring, maintenance and corrective works throughout the PPA period. This reduces the operational burden on the property owner.

More Predictable Energy Pricing A PPA establishes an agreed pricing mechanism for the solar electricity generated by the system. The exact pricing structure may be fixed, indexed or otherwise defined within the agreement.

Performance-Aligned Structure Because payments are based on electricity generated under the agreed commercial terms, the performance of the solar system remains an important part of the PPA relationship.

A PPA is a long-term commercial arrangement, so the contract should be reviewed carefully before proceeding.

Important considerations can include:

• PPA Contract Duration
• Electricity Purchase Rate
• Any Rate Adjustment Mechanism
• Solar System Ownership
• Maintenance And Insurance Responsibilities
• Access To The Solar Installation
• Treatment Of Renewable Energy Credits
• Early Termination Provisions
• Property Sale Or Tenancy Changes
• End-Of-Term Options

The specific terms vary according to the project and should be confirmed in the applicable PPA agreement.

A Solar PPA can be suitable for organisations that want to adopt solar while preserving capital for other business priorities.

It may be particularly relevant for commercial, industrial, institutional and other properties with sufficient roof space and consistent electricity demand.

UTICA® evaluates the site's technical suitability alongside the commercial requirements before recommending whether a PPA is an appropriate structure.

For customers who prefer to own the solar system over a shorter payment period, UTICA® also offers Pay-As-You-Own and other financing pathways.