4 Things to Look Out for in Solar Power Purchase Agreements

PPA is an agreement to sell energy. At Solar PPA, customers buy energy from a solar photovoltaic system, but not the system itself. Usually, suppliers own and manage the system, and customers buy energy for a certain period. It allows customers to buy clean energy at a low initial cost.

Things to look for energy purchase agreement in Australia:

1. Rules or procedures: Energy sales are highly regulated. Suppliers need approval or release from the energy regulatory authority. In general, exceptions can apply if the customer is connected to an existing energy trader (PPA is not the only energy supply). But it's not easy, and service providers have to do it right – read if you break the law, if not.

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2. Renewable Energy Certificates: Make sure the PPA covers who owns all RECs (most likely a small technology certificate). Ask the customer to do everything possible to transfer REC and register with the supplier if the supplier requests.

3. Access: Give suppliers access to system installation and maintenance. 

4. Ownership: Ensure that the system is the provider's private property. Customers should not have an interest in ownership of the system until they buy it directly. The idea is to avoid anchoring the system on the property where it is installed. Think about how to register the system to protect the interests of providers.