Power Purchase Agreement – PPA
A Power Purchase Agreement is a finance option available to purchase a Solar PV System or Solar and Battery system, with no money upfront.
PPA can be used by both residential and business customers, paying a low regular rate for the power the Solar PV System installed under the PPA generates in $/kWh for a fixed period. After the period, the customer can usually take ownership of the Solar PV System or Solar and Battery system for a low token amount, in most cases $1.
With a PPA the benefit is immediate as the rate per kWh agreed upon is typically significantly lower than a retailer’s electricity rate. In cases savings can be 50% and more.
Businesses who want to go green and benefit from using renewable energy don’t need to outlay capital to purchase a depreciating asset, instead, with a PPA the business is incurring an expense for the electricity generated under the agreement. As PPA is similar to a Lease, we suggest discussing the accounting and tax benefits of using a PPA with your accountant.
The way a PPA works is that the client will engage the solar installer to install a Solar PV System or Solar and Battery system. The installer in turn arranges the finance via a third party, the financier, who effectively pays and owns the installed system for the period set out in the agreement.
A benefit using a PPA is that the financier will look after the insurance for the system and ensure it is working at it’s optimum as it is in the financiers best interest.
To find out more, get in touch with our friendly team 1300 588 580
FREQUENTLY ASKED QUESTIONS
We partner with local solar companies whose installers have battery certification and training. Once installation is completed, Say Yes Solar does a quality review check to ensure everything was done properly - including a review of the solar, battery, and home energy monitoring that comes free with every Say Yes Solar system.
Yes. We take care of all installation, maintenance, repairs, and cleaning for you so that you don't have any surprise costs down the track. This includes replacement of the panels, inverter, or batteries if they stop working at any point. It gives you peace of mind, and you can rest easy knowing we are taking care of you.
Everything to make your system work properly and keep your electricity bills nice and low! We're responsible for maintenance, monitoring, service and equipment replacement for the whole system throughout the Free solar system scheme agreement. You can think of this like a full system warranty and insurance - if the panels or batteries stop delivering power to your home, we will fix it at our cost, and your lease payments will be refunded for the days the system wasn't working properly. This policy is there to give you peace of mind so that you can be 100% confident in your switch to solar and battery power for your home.
No. You only pay for the power that the solar system creates - so if it's not making power, you don't pay. The installation comes with 24/7 monitoring so as soon as an issue occurs, we will be informed and we'll fix it for you at no cost. You can also log into that online dashboard yourself to have a look at how things are going at any time.
We only use top tier products because, at the end of the day, we are responsible to fix anything that breaks, and pay for any replacement parts. One of the benefits of the Free solar system Scheme is that you don't have to worry about any replacement costs during the life of the term and when you own the system at the end, you get the best solar equipment!
We are proud to offer the South Australian assembled Alpha ESS battery system as well.
If you'd like to upgrade your panels or batteries, simply give us a call and let us know what products you want upgraded. We'll install the new panels or batteries and either adjust the fixed rate or add a bit more time to the agreement term.
The standard agreement is for 5 or 10 years and comes with a full system warranty, all replacement costs covered, and insurance on the entire installation.
Absolutely! If you want to purchase the system early you can do so without penalty, and at a fair price. The price is simply the value of the system when it was installed minus 20% for each year that it's been on your roof. This is all outlined in the quote you receive before signing on.
If you move, you can either transfer the agreement to the new homeowner or buyout the system and include it in the price of your house. It's similar to other home improvements like adding a pool or air con - you get the benefit while you live there, and it adds value to your home if you're looking to sell.
The application is extremely easy - you just need a copy of your electricity bill, government issued Photo ID, and rates notice. As long as your electricity bill is paid up to date and you own your house you have a very good chance of being approved.