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3Rd-Party Solar Pv Power Purchase Agreements (Ppas)

Posted on Nov 27, 2020 in Uncategorized

In both models, a solar company installs a solar installation on the customer`s field, often at no prior cost, and is responsible for the maintenance of the system. Under an AAE, the customer pays for the electricity generated by the solar installation at an agreed rate. With a lease agreement, a customer rents the solar installation and takes advantage of the electricity generated by the installation. At the end of a PPP or leasing period, the client can extend the life or acquire the system. B. Repairs and replacements. Many roofs need to be maintained and repaired at some point or during the life of the AAE. In addition, most roof coverings are designed with a known lifespan. Exceeding the use time of the existing roof may require that the solar installation be moved or removed from the roof to allow for repair or replacement of the existing roof. There are direct economic costs if the installation is both separated and spreads to the roof to separate and move from the roof while the repair or replacement is being done. These costs include the loss of the sale of electricity during the period during which the facility is out of service, as well as the loss of sales of REC or other subsidies that depend on the facility in production. Project owners often give the electricity purchaser or landowner an agreed period during which there is no penalty for regular repairs and maintenance.

If the shutdown time of the facility exceeds this agreed period, many PPPs must require that the electricity purchaser begin to compensate the project owner for lost electricity sales, lost CR Sales and other lost economic benefits. If the electricity buyer is not the host, it is a clear need to coordinate AAEs and rentals, licenses or site facilities to deal with this risk. C. Project Operation and Maintenance (“O-M”). AAPVs generally ensure that the project owner is responsible for the maintenance of the facility. As a general rule, several standards are set, for example. B compliance with prudent procurement practices, prudent practices of the solar industry or best practices, but they are all essentially the same: the facility must be maintained so as not to pose a danger to the individual, to the structure on which it is located or to the grid and to produce electricity in accordance with the contract`s expectations. The owner of the project will often fulfil this obligation through a third-party D-M contract. Many installation companies also want to process O-M and can extend the duration of their equipment and installation warranty (two or three years, increase to five or ten years) if they obtain the D-M contract.