A Solar Purchasing Power Agreement (SPPA) is a financial agreement whereby a third-party developer owns, operates and maintains the photovoltaic (PV) installation, and a host customer agrees to install the facility on its land and acquire the electrical power of the system from the solar service provider for a predetermined period. This financial agreement allows guest customers to obtain stable and often inexpensive electricity, while the solar service provider or any other party acquires valuable financial benefits, such as tax credits and revenue from the sale of electricity. Systemshosts may sell and purchase in their place RECS from other geographically eligible green electricity resources, in order to assert environmental rights. This process is called REC-arbitration and allows the facility operator to capture the financial benefits of solar RECS while meeting the environmental partnership requirements. For an in-depth discussion of UCs, read the EPO White Paper on UCs. Ein Gastkunde erkl-rt sich damit einverstanden, dass auf seinem Grundst-ck, in der Regel auf dem Dach, Solarmodule installiert werden, und unterzeichnet einen langfristigen Vertrag mit dem Solardienstleister `ber den Kauf des erzeugten The guest property may be either in possession or leased (note that for rented properties, solar financing works best for guests with long-term rent). The purchase price of the electricity generated is generally less or slightly lower than the price of electricity for the retail trade that the guest customer would pay to his or her electricity supplier. SPPA rates can be set, but they often contain an annual staircase of 1 to 5 per cent to account for the effectiveness of the system with the age of the system; Increased inflation-related costs for the operation, monitoring and maintenance of the system; and the expected increases in grid-fired electricity prices. A SPPA is a performance-based agreement, in which the host pays only for what the system produces. Most SPPAs can last from six years (.dem the date when the available tax benefits are fully realized) up to 25 years. A solar electricity sales contract (PPA) is a financial agreement whereby a developer organizes the planning, approval, financing and installation of a solar installation on the land of a client too little or no cost. The developer sells the electricity produced at a fixed price to the host, which is usually lower than the local distribution company`s retail price. This decrease in the price of electricity is used to compensate for the purchase of electricity from the grid by the customer, while the developer receives the revenues from these electricity sales as well as all tax credits and other incentives of the system.
PPAs are typically between 10 and 25 years old and the developer remains responsible for the operation and maintenance of the system for the duration of the agreement. At the end of the PPA contract term, a customer may be able to extend the PPP, have the system removed from the developer or purchase the solar installation from the developer. With this business model, the visitor customer buys the services produced by the photovoltaic installation and not the photovoltaic installation itself. This framework is called „solar services“ and developers who offer SPPAs are called solar service providers. SPPA agreements allow customers to avoid many traditional barriers to installing on-site solar installations: high anticipated capital costs, system performance risks, complex construction and licensing processes. In addition, SPPA agreements can be positive for the customer from the date the system is commissioned.