Our company are a form of private Power Purchase Agreements (PPAs) to viable clients, which relates to the way in which Eskom form agreements with independent power producers (IPPs).
The concept of the Power Purchase Agreements entails for Earth Care Solar Pty LTD to install the solar panel systems at no cost to you as the Client, subject to the signing of a long-term lease agreement on the premises which is linked to a “solar tariff’ for electricity sales to increases at the same rate as the Licensed Authority rate every year over the contract period.
The basis of the partnership agreement is that as our Client, you will pay for the power used and over time the installation will return a profit to Earth Care Solar Pty LTD on the payments we receive for the power generated. The agreement will furthermore be structured to give the Client a saving in the form of lease earned and discounted payments for early payments, The Client could also, in some cases, be allowed to invest a start-up capital amount on the installation, ranging between zero percent (0%) and fifty percent (50%), depending on the agreement signed.
The principle conditions would require Earth Care Solar Pty Ltd to lease available space from the Client who then in return sign a long term agreement (normally 15 years) that complies for the Client to pay for the solar produced electricity from the installation on the premises. The concept is especially favourable for residential, commercial, and industrial sites that want to make use of renewable energy, but cannot afford the upfront capital costs required and would not want the additional burden to maintain and monitor such an installation.