Power Purchase Agreements

A No-CapEx On-Site Decarbonization Solution

What is a Power Purchase Agreement and what does it include?

A No-CapEx On-Site Decarbonization Solution

A Power Purchase Agreement (PPA) is a financial arrangement where a third-party developer installs, owns, and operates a solar energy system on your property while you purchase the generated electricity at a predetermined rate. This solution is perfect for homeowners and commercial real estate owners seeking to decarbonize and lower their energy costs with zero upfront investment or financing required.

Under a PPA, you're paired with a financier who becomes the asset owner and includes full operations and maintenance coverage for the system's operating life. This includes 24/7/365 monitoring, damage claims, and emergency shutdown requirements. The result is an immediate building performance upgrade that can reduce energy expenses by 20% or more from day one.

After the majority of incentives are captured, buyout options at Fair Market Value may be offered. When the system reaches the end of its operating life, decommissioning is fully covered by the asset owner under the PPA Agreement.

Key Benefits of a PPA

Discover why Power Purchase Agreements are the preferred choice for decarbonization and cost reduction.

No Upfront Investment

Zero capital expenditure required - perfect for homeowners and commercial real estate owners seeking to decarbonize.

Immediate 20%+ Savings

Reduce energy expenses by 20% or more from day one with rates typically below market price.

Full O&M Coverage

24/7/365 monitoring, damage claims, and emergency shutdown requirements included in your PPA rate.

Building Performance Upgrade

Results in an immediate building performance upgrade with seamless solar integration.

Power Purchase Agreement Frequently Asked Questions

Get answers to the most common questions about Power Purchase Agreements.

1. What are the risks associated with signing a Power Purchase Agreement?

The biggest risk is signing with a provider that is not well-financed. Clean Earth Renewables only works with leading PPA financiers across the country with $2B+ in project financing, ensuring the lowest cost of capital for energy customers.

2. How can I qualify for a Power Purchase Agreement?

PPA customers are typically property owners with 25,000+ sq. ft. of available roof/land space and $5,000+ per month in electricity costs. Clean Earth helps weigh whether investment or a PPA is the best route.

3. Are there any costs associated with a Power Purchase Agreement?

A PPA allows organizations to secure a long-term fixed kWh rate, usually below market price. Engineering, procurement, construction, and maintenance are all included in the PPA rate.

4. Why might my price change between LOI and contract signing?

LOI pricing is subject to final engineering, equipment, labor, and construction costs. Customers should provide energy usage, financials, and property credentials quickly to keep estimates accurate.

5. Is maintenance included?

Yes. Maintenance is provided under the PPA contract, typically performed by the EPC during the full contract term.

6. Is there an option to buyout the contract and own the system?

Yes, usually after 5–7 years, through a lump sum payment of remaining contract value.

Ready to Explore a PPA?

Our team can help you determine if a Power Purchase Agreement is the right solution for your energy needs and decarbonization goals.