
Solar PPA
Solar PPA, also known as Power Purchase Agreement, meaning that you pay nothing upfront, take no risk, however still enjoy the benefits of a Commercial Solar PV system.
The PPA agreement, gives you a freedom of accessing Solar as a Service, without the need of large CAPEX cost, while you receive benefits of Solar PV Panels Installed on your Commercial Roof.
Normally with a PPA, you will have two suppliers instead of one (like now).
This means, whatever your Solar Panel generates, you purchase from the PPA provider on a fixed price and you only purchase the surplus from your current Energy Supplier.
For Example: ABC Food Company consume 100,000kW Day time energy from ESB and installing a 50kW Peak Solar PV Array. Depends on the orientation of the Solar array & depends on the quality of the materials, this 50kW PV system will generate between 37,000 – 45,000kW per Annum.
Your Business will purchase 45,000kW of Energy on a fix (e.g: 20c/kwh) while you keep purchasing the 55,000kWh from ESB, which the solar panels could supply.
If your Energy rate is 50c/kW (Variable) with your supplier and your PPA is 20c/kWH (fixed), your Savings can be calculated like this:

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Example PPA Saving Calculations
If your Energy rate is 50c/kW (Variable) with your supplier and your PPA is 20c/kWH (fixed), your Savings can be calculated like this:
Current Bill based on 100,000kW of Electricity Consumption without PPA.
Grid Supply: 100,000kWh x 50c / kWh = 50,000€ Plus VAT + Other Charges / Annum payable to the Energy Supplier.
Current Bill mixed with PPA on 100,000kW of Electricity Consumption
- Grid Supply: 55,000kWh x 50c / kWh = 25,000€ Plus VAT + Other Charges / Annum payable to the Energy Supplier.
2. Green Solar Supply: 45,000kWh x 20c / kWh = 9,000€ Plus VAT + NO Other Charges / Annum payable to the PPA Supplier.
3. Your First Year Savings
50,000€ paid last year – 25,000€ for Energy Supplier – 9000€ for Green Solar (PPA) Supplier = You will Save 16,000 per Annum in the First Year alone.
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