Solar Power Purchase Agreements (PPA)

What is a Power Purchase Agreement (PPA)?

A customer subscribes to a Nexamp solar array.
The solar array feeds clean electricity that is either consumed by the customer or fed directly into the grid.
The electricity or the energy credits generated are sold at a discount, generating savings and protecting the customer against commodity price volatility.

With a Power Purchase Agreement, solar arrays are installed on or near a customer’s property, and the electricity generated is consumed either by the customer, or by the local utility. Under a PPA, the customer will pay the system owner each month for the electricity generated at a reduced price. The system owner finances the installation of the solar arrays and performs ongoing maintenance.

Onsite PPA

If the solar facility is located on the customer’s premises, they would typically enter into an onsite solar PPA. In this agreement, we install, own, and operate the system. The power generated directly offsets electricity that would otherwise be drawn from the grid.

Offsite PPA

When projects are located offsite, such as a Nexamp Community Solar farm, customers sign an Offsite solar PPA. Under this program, net metering credits are allocated to the customer’s bill at a guaranteed discount, allowing customers to pay a reduced price for electricity at their property or office, saving money year after year.

Benefits of a Power Purchase Agreement