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Power Purchase Agreement

A power purchase agreement (PPA) is a contract between an independent power producer (seller or provider) and private entity that is looking to purchase electricity (buyer). It’s commonly used for financing energy efficiency or renewable energy investments, and lowering utility costs.  By entering into a PPA, buyers will pay no up-front cost to install the equipment (as the capital provided by the seller), and purchase power generated by the provider for an agreed-upon prices and time during the contract period. The provider will purchase, install, operate and maintain the power equipment sited on the buyer’s property. Therefore, it is usually associated with other agreements or contracts for land use and interconnection.

Associated Renewable's Financing team is involved in creating power purchase agreements (PPAs) between producers and buyers, helping both sides achieve their energy efficiency & cost reduction goals simultaneously. Contact our Energy Solutions team at (212) 444-8215 to learn about various power purchasing options that could help your property save energy, reduce costs while procuring electricity & improve tenant comfort, while boosting the facility's efficiency ratings.

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Tuesday, February 14, 2017 - 13:01


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