WHAT IS A POWER PURCHASE AGREEMENT?
A Power Purchase Agreement (PPA) is a contract between your organization and Sustainable Energy Fund, where SEF owns and operates the renewable energy system installed on your property. The electricity generated by the system is purchased by your organization through a long-term contract, typically from ten to twenty-five years.
Under the Energy Policy Act of 2005, Power Purchase Agreements have enabled businesses, schools, churches and more to purchase electricity directly from the generator rather than from the utility.
This purchasing alternative provides the customer with a fixed, predictable cost of electricity over the length of the contract without the additional costs of purchasing and maintaining the solar photovoltaic, micro hydro or wind system.