What is a PPA?
Essentially it is an agreement which involves a party which generates electricity and a party looking to purchase electricity.
The PPA Supplier (Ovida) takes full financial responsibility for the solar system including installation, maintenance and retains ownership of it.
The purchaser (customer) buys electricity generated by this system from the provider at agreed rates for an agreed term.
Look at a PPA more like an Energy plan rather than a solar solution, Customers don’t want solar they want an energy solution and they are already buying the power as it is, so they may as well buy it cheaper
A tailored solution:
The system is specifically designed for a customers energy profile. Delivering them the power they need just at a lower rate.
Fixed Energy Rates:
PPA’s provide greater certainty on future electricity costs, with fixed prices for an agreed period (only increasing by CPI). Customers can fix their rates for periods even up to 20 years!
The solar system is owned, operated, maintained and monitored by Ovida. It is in our best interest to ensure the system is running at its best.
How does it work?
Reduce energy cost without the up-front outlay
NO OR LOW UPFRONT CAPITAL COSTS
We handle the upfront costs of sizing, procuring and installing the solar PV system. Without any upfront investment, our client’s are able to adopt solar with zero capital outlay and begin saving money as soon as the system becomes operational.
POTENTIAL INCREASE IN PROPERTY VALUE
A solar PV system has been shown to increase residential property values. The long-term nature of these agreements allows PPAs to be transferred with the property and thus provides customers a means to invest in their property at little or no cost.
REDUCE ENERGY COSTS
Solar PPAs enable customers to lock in predictable and lower cost
of electricity by purchasing the energy produced by the solar system on their premises. The PPA rate we offer is subject only to annual CPI increases and maintains a constant price in real terms throughout the term of the PPA, saving the customer more as utility prices rise over time.
We take responsibility for the system performance and operation. In fact, all risks of ownership are carried by
us including maintenance and monitoring.
Solar PPAs present strong environmental practices and may work towards meeting organisational carbon emission targets. They are also a tangible and visible example of ‘Corporate Social Responsibility’ which ultimately makes financial sense.
NOTE: During, or at the end of the term, the customer can offer to take over ownership at a reduced or minimal cost and therefore no longer paying for the energy generated.