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How important are power purchase agreements for solar projects?
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Who can enter into a PPA with a distributed generation solar system?
IV. Distributed Utility PPAs. Certain utilities, including the Southern California Edison Company (“SCE”), Pacific Gas and Electric Company, and San Diego Gas & Electric Company in California, have received authority to enter into PPAs with distributed generation solar installations owned by independent power producers.
Does a PPA Cover a solar PV installation?
The PPA itself will usually not have any provisions dealing with these situations because the typical solar PV installation is delivering behind the meter for the immediate use of the power purchaser without the requirement of any use of the local utility's grid for transmission.
How does a solar PV PPA work?
Standard Terms. Most current distributed generation solar PV PPAs simply provide that the buyer will buy all of the electricity generated by the installation at the price specified in the PPA and the electricity will be delivered at the point of interconnection with the buyer's (or site host's) electric system (“behind the meter” delivery).
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