A PPA, or Power Purchase Agreement, is a common financing structure for clean energy systems.
A PPA, or Power Purchase Agreement, is a common financing structure for clean energy systems where a 3rd party owns and maintains the energy system at your building and you (the buyer) pay for electricity generated by that system at a discounted rate.
A PPA allows the buyer to receive stable and often low-cost electricity with no upfront cost, while also enabling the owner of the system to take advantage of tax credits and receive income from the sale of electricity.
To be eligible for a PPA, a project must be located in a state or jurisdiction where third-party ownership of energy generation equipment is allowed. Some state regulations limit or restrict non-utility providers in regulated markets from selling electric power. Our Clean Energy Report Card will display if PPA is available at a building location.
