A Solar Power Purchase Agreement (“PPA”) is a financial agreement between the Customer/Homeowner (“Host”) and a Solar Financing Company (“System Owner”), where the Host agrees to purchase electricity generated by the solar panel system installed on their premises. The PPA (Beta) payment type can be used to configure that payment option.
To create the payment type, click on . Select the Type field as PPA (Beta), as shown below:
Next, you will need to enter both the payment option and PPA (Beta) specific fields:
|
Title |
How this payment option will appear in Design and the Online Proposal |
|
Auto-Apply |
When turned on this payment option will automatically be applied to all new projects. Note:You can always remove it from a particular project in Design |
|
Description |
Enter a short description of the payment option for your reference |
|
PPA ($/kWh) |
The price the Host will pay for each kWh of electricity consumed on-site |
|
PPA Escalator Annual (%) |
The annual price escalation rate for the electricity consumed on-site |
|
PPA Upfront Payment ($) |
If applicable, any amount the Host will pay the System Owner upfront |
|
PPA Export ($/kWh) |
The price the Host is charged for electricity exported to the grid. Please see important note below regarding PPA vs. PPA Export |
|
PPA Escalator Annual Exports (%) |
The annual escalation percent for the electricity price exported to the grid |
|
Term (years) |
Length in years of the agreement |
|
Cap Total (kWh) |
The maximum number of kWh the Host can be charged during the lifetime of the PPA |
*To learn more about the Auto-Apply subfields, please see our help center article What is Auto-Apply.
Additionally, by turning on Advanced Setting, you may update the Utility Rate Override, set the Priority, choose to collect a signature from the customer when they approve the proposal and enter the PPA (Beta) specific Terms and Conditions.
You also have the option to customize the quotation table shown on your Online Proposal for your new PPA (Beta) payment option. To learn more, please see our help center article Edit the Quotation Table for Payment Options.
Finally, don’t forget to click the SAVE button to finish creating your new PPA (Beta) payment option.
PPA vs. PPA Export
Our PPA (Beta) payment option is set up to accommodate PPA agreements that charge differently for electricity that is consumed onsite vs. electricity that is exported to the grid The “PPA” field is what the Host is charged for electricity consumed onsite and the “PPA Export field” is what the Host is charged for electricity exported to the grid.
In the U.S., it is typical for the Host to pay for all of the electricity generated by the system (and get compensated by the utility via net metering for any electricity that is exported to the grid). To model this scenario, you would enter the same values in the “PPA” and “PPA Export” fields. Ditto, the same values for the "PPA Escalator Annual" and the “PPA Escalator Annual Exports" fields.
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