What Is a Solar Power Purchase Agreement and What Does It Include?

What is Solar PPAA solar power purchase agreement (PPA) is a financing agreement that allows independent houses or bungalows, residential societies, educational institutions, commercial buildings, hospitals and hotels to install a solar PV system at little to no upfront cost. The solar company arranges for the layout, permitting, funding and installation of the solar PV system. The solar company also sells the solar power generated at a fixed per-kWh rate to the customer. This cost is often lower than the retail electricity rate. During the tenure of PPA, the solar company receives income by selling the solar power together with any tax credits and incentives generated from the PV system. All of the maintenance and monitoring charges are covered by the solar company. The customer saves up to 30-40% on their electricity bill as soon as the system becomes functional. The contract term typically lasts between 10 to 25 years at which point the agreement is renewed, or the system is removed by the solar company upon request or the system is purchased.


No or low upfront capital cost: The solar company handles all the upfront costs involved in designing, procuring and installing the solar photovoltaic system. This allows the customer to start saving on electricity bill from the day the solar PV system is commissioned.

Immediate energy savings: PPA is a great way to reap the benefits of solar and experience a stable, low-cost electricity from one of the two structured plans. As per the fixed cost plan, the customer buys the solar power generated at a fixed monthly rate throughout the PPA term. As per the fixed escalator plan, the customer pays an electricity price that rises at a fixed rate, between 2-5%. The price of the electricity in both the structured plans is often lower than the electricity cost from the grid. Even though the customer isn’t the owner of the system during the contract term, they can still pay little for the electricity consumption and start saving from day one.

Limited liability: The solar company is responsible for the system performance, maintenance and operation. This means that the customer is free from any risk if the system modules break down prematurely.

Better leverage of feasible tax credits: Solar companies are better positioned to make use of feasible tax credits and incentives to reduce the solar PV system cost.

Green-living:Solar is a clean and fresh renewable source of energy. Installation of solar panels enables the customer to reduce the carbon footprint affordably. An average 50 KW Solar System can reduce up to 72 tonnes of CO2 emissions every year which is equivalent to planting over 1500 trees.


It is always a good idea to assess multiple solar PPA providers before signing a Power Purchase Agreement. Solar PPA with Minus CO2 offers a vast range of services. Here is a list of PPA service benefits offered by MinusCO2that you should consider for making the right decision

Pay only for the power you use: Customer can save up to 30% on energy bills by only paying for the solar power generated by the PV system

One-stop-service: Complete solar service support including the paperwork, design, installation and maintenance will be handled by the Minus CO2team

Worry-free maintenance & performance: Low-cost operation and maintenance service including preventive maintenance, monitoring and system cleaning. This will ensure a hassle-free performance of the solar PV system

Own the system after PPA term: At the end of the agreement, Minus COlets the customer become the owner of the system at no extra cost.

Has this sparked your interest in going solar? Then, contact Minus CO2, an excellent energy partner for decades to come. Make your solar dream come true and become solar smart. Visit www.minusco2.in or Call +919022650560 to know more and request a free quote.