The document discusses solar power purchase agreements (PPAs), which are contracts between an electricity generator (seller) and a purchaser (buyer), intended to facilitate the financing and installation of solar energy systems. Key components include fixed or escalating pricing, tax credits, duration of the contract (typically 10-25 years), and options for the customer to purchase the system. The document emphasizes the benefits of solar energy in hedging against price volatility and demonstrating a commitment to green energy.

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SOLAR POWERPurchase Agreement Contracts
presented by Chris Allwein
April 7, 2016

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What is a
contract?

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Written or spoken agreement,
especially one concerning
employment, sales or tenancy, that
is intended to be enforceable by law

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Basic Elements of
Contract Law

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Basic Elements of
Contract Law
OFFER
ACCEPTANCE
CONSIDERATION

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Power Purchase
Agreements

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Contract between two parties, one
which generates electricity (the
seller) and one which is looking to
purchase electricity (the buyer)
PPA

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Financial agreement where a
developer arranges for the design,
permitting, financing and installation
of a solar energy system on a
customer’s property at little to no cost
Solar PPA

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Why the interest in
SOLAR?

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1 Hedge Against Price
Volatility

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2 Reduction in Capacity +
Transmission Charges

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3
Use it to Demonstrate
Commitment to Green
Energy

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4 Early Adopter

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SOLAR PPAs
Construction
Contract
Property
Lease or
License
Financing
Mechanism

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Covers payment, specific documents,
authority, change orders, work
schedule, etc.
Construction Contract

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Provides developer with legal
permission to construct array on the
property
Property Lease or License

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Financing Mechanism
Parts + Purposes

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Financing Mechanism
Customer purchases power at fixed
or escalating rate
Developer receives income from
power sale, tax credits and RECs, and
maintains system for duration of PPA
Duration of Agreement is anywhere
from10-25 years
Host Customer may have option to
purchase system at some interval in
the contract period or at conclusion
of PPA Contract period

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1 Power Purchase: Fixed
or Escalating?

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2 Tax Credits + RECs

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3 Duration of Contract

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4 Option to Purchase

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Summary:
PPA is a Contract between
Customer Host and Developer
Owner to purchase electricity

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PPA-Specific Contract Parts:
Fixed or Escalating Price;
Addresses Tax Credits and RECS;
Duration of Contract and Options
to Purchase System

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Thank You!
Christopher J. Allwein
Kegler Brown Hill + Ritter
callwein@keglerbrown.com
keglerbrown.com/allwein
614.462.5496
Todd M. Williams
Shindler, Neff, Holmes, Worline & Mohler
twilliams@snhslaw.com
419.725.2273
snhslaw.com