The Power Purchase Agreement (PC for Solar) 97
Projects at Least $1,000,000 in Value
There are substantial costs associated with each PPA deal, due to all
the legal, tax structure, and engineering fees. With a larger project, those
fixed costs are spread throughout a longer period of solar power and have
less of an impact on the PPA price.
Excellent Solar Location
The more electricity a given solar installation can produce, the lower
the resulting PPA price will be. The reason is that a PPA provider will pur-
chase the solar system and require a certain return on investment for the
PPA term. The more a system produces over that term, the lower the re-
sulting kWh price will need to be to cover the investment return require-
ments.
How to Receive a Quote for a PPA
There are a number of PPA firms available. Below you will find a
short list of several reputable PPA providers, but there are many others
available. Not all providers will offer the same price for a PPA for a given
project so it is good to ask for a PPA quote from more than one. In order
to receive a PPA quote, the PPA provider will need to know:
Figure 5-4