A Power Purchase Agreement (“PPA”) can typically last fifteen to twenty years, but solar PV systems have an operating life of twenty-five years or more. So what happens when the PPA term expires and the system is still operating? The party that purchases the electricity – the “host” or “offtaker” – usually has three options at the end of the PPA term: (i) renew the PPA, (ii) purchase the system at fair market value, or (iii) have the equipment removed.
Renew the PPA Keep reading →
Each month we see dozens of solar projects; most of them will never get financed. Quite simply, the economics do not support the deal. For promising projects, we perform a detailed viability analyses but in most cases this is not necessary; it does not take much to spot an un-financeable solar project. Why then do they keep coming?
The lack of knowledge regarding a project’s financial viability is not only widespread in the solar community, but it is costing the industry terrific amounts of time and lost opportunities as projects are pursued (sometimes for months) before a check on project economics points out their unsuitability. Keep reading →