Our goal is to deliver to our clients cleaner, cheaper and reliable power
A solar power purchase agreement (PPA) is a financial agreement where Powertex Capital arranges for the design, financing arrangements and installation of a solar energy system on a customer’s property at little to no cost. Powertex Capital sells the power generated to the customer at a fixed or variable rate that is significantly lower than the local utility’s retail rate. This lower electricity price serves to offset the customer’s purchase of electricity from the grid while the developer receives the income from the sale of electricity generated from the system. PPAs typically range from 10 to 15 years and Powertex Capital remain responsible for the operation and maintenance of the system for the duration of the agreement. At the end of the PPA the customer owns the solar PV generation system.
Benefits of PPAs to Solar Customers
No or low upfront capital costs: Powertex Capital handles the upfront costs of sizing, procuring and installing the solar PV generation system. Without any upfront investment, the customer is able to adopt solar and begin saving money as soon as the system becomes operational.
Reduced energy costs: Solar PPAs provide a fixed, predictable cost of electricity for the duration of the agreement and are structured in one of two ways. The price the customer pays rises at a predetermined rate, typically between 2% – 5% or CPI. This is often lower than projected utility price increases. There is also an optional fixed price plan which maintains a constant price throughout the term of the PPA saving the customer more as utility prices rise over time.
Limited risk: Powertex Capital is responsible for system performance and operating risk.
Only pay for the power used from the solar PV: Unlike most other PPA providers, Powertex Capital only charge for the power consumed by the customer from the solar PV generation system. In other words, any excess power which is generated by the solar PV system and is fed back into the electricity grid will not be charged for by Powertex Capital to the customer. We do this by installing 2 high accuracy meters approved by the Electricity Industry (Metering) Code, to obtain exactly how much power has been used by the customer from the solar PV and deducting solar power which has exported back to the grid.
PPAs are a great solution for businesses that want their electricity expenses ‘clearly’ off-balance sheet. The PPA product suits commercial clients that don’t want to be 100 percent at the behest of the utilities.
Given the fact that the majority of businesses are operational during the day, they will be using most of the solar power generated. So the level of feed-in tariffs, which in any event have been wound back across most states, are less critical.
PPA contracts typically run for 10-15 years, and Powertex Capital can steer the project from start to finish.
Powertex Capital arranges all necessary checks and balances to determine optimum rooftop PV sizes and configurations before drawing up the legal contracts. All of this is managed in-house. We not only design and install systems but also carry the license to sell electricity produced from solar PV. We have the specialist staff, networks and systems and funding to provide the full PPA solar service.
Our PPA products operate uniquely and different to other PPA providers by metering only the power which is utilised by the business and not charged for solar which is exported back to the grid. We do this by installing approved metering infrastructure which is operated by an approved and independent retailer who take care of the accounts. It is important to note that your existing electricity retailer (Synergy in most cases) remains your primary electricity provider.
Get in touch with Powertex Capital to find out more 1300 614 667 / firstname.lastname@example.org
How We Install Solar Power Under a PPA
Before we install your solar power system, we will need to perform an assessment of your premises and your electrical infrastructure, and your business’s electricity consumption profile. Then, we advise you on the best solar power system for you and fully explain your pricing options.
You agree to buy the electricity from your Powertex Capital and sign a contract for a certain term. Once the system is installed and producing electricity, you will be sent a monthly account showing how much electricity is produced. You don’t need to do a thing – we maintain and monitor your system for the entire life of the agreement.
If you are interested in finding out more about whether a Solar Power Purchase Agreement is right for your business, call us on 1300 614 667. Alternatively, request a callback from one of our experienced technicians, or send us an email.