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Solar Power Purchase Agreement Template

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Prepared for:

​[Buyer.FirstName][Buyer.LastName] ​[Buyer.Company]​

Prepared for:

​[Developer.FirstName][Developer.LastName]

​[Developer.Company]​

Agreement Between:

​[Developer.FirstName]​[Developer.LastName]​[Developer.Country] owning a registered office at [Developer.Company]​[Developer.StreetAddress]

and

​[Buyer.FirstName]​[Buyer.LastName]​[Buyer.Country] with an office located on [Buyer.Company]​[Buyer.StreetAddress]. Both Buyer/Client and Developer may be considered as “Party” and together as “Parties” on the date of the Agreement [Document.CreatedDate].

WHEREAS:

  1. The Developer confirms to complete the entire construction and commissioning of their Project

  2. The Developer confirms to sell the energy output from the Project to the Buyer

  3. Buyer wishes to buy the energy generated according to the terms and conditions presented in the Agreement

Now, Therefore, the Parties intend to be legally bound to all the conditions, warranties, and representations mentioned in this Agreement. These clauses are as follows:

Defined Terms and Interpretation

The interpretation of expressions and terms in this Agreement are according to the meanings provided in Schedule A.

Terms not mentioned in this schedule shall have the same meaning as mentioned in the Oxford dictionary.

Further, the heading of all the paragraphs mentioned are majorly for convenience only, and in case of a conflict, the context of the paragraph should be considered.

Terms such as Buyer is the client in this Agreement. Similarly, the Developer is the purchaser. This information shall be mentioned and interpreted as given in the schedule.

It should also include the meaning of terms such as project, government, metering system, net energy output, and relevant consents.

Purchase and Sale of Energy

  • In accordance with this Agreement's provisions and terms and conditions, the Developer will sell the net energy output to the Buyer.

  • Subject to all terms and conditions of the Agreement, the Buyer should purchase capacity and energy from the Developer on the basis of the prevailing tariff.

  • The amount due for the net energy output is in accordance with the rules mentioned in the payment section.

Term

  • The initial term of the Agreement would commence on the Agreement’s date.

  • Both parties can agree to change the length of the Agreement's term as per their needs.

  • Any of the Parties can extend the tenure of the Agreement as per the agreed renewal terms as agreed by both Developer and Buyer.

Billing and Payments

  • All payments and money received should be calculated in the Agreement’s agreed currency.

  • The invoice shared by the Buyer must feature detailed calculations highlighting any amounts owed.

  • A special invoice should be generated in case of a breach or default. This should cover all the amounts owed and details on any payment delays.

Pre-operation Obligations

  • A Developer should be obliged to finish the Project’s construction and should also conduct the prescribed operations.

  • The Developer is responsible for maintaining all licenses, approvals, and permits demanded by local agencies.

  • The Developer shall be obliged to obtain tax credits, loans, or grants from public and private institutions.

Metering

  • The Buyer should own and maintain the Metering System with performance measurements to calculate the payments made to the Developer.

  • The Parties should be responsible for testing and inspecting all the Metering Equipment.

Mutual Warranties and Covenants

  • One party warrants the other that each party is duly formed and under the excellent standing of the law of [Developer.Country] and is qualified to conduct business in (country of the Project) by complying with all the laws.

  • Unless stated otherwise, the Developer shall own, design, and construct the Project under the Agreement's laws, regulations, and rules.

  • Buyer agrees to pay for the net energy output mentioned in the Agreem

Insurance

  • All the insurance related to the Project should be maintained by both Parties involved.

Resolution of Any Dispute

  • In case of any dispute related to the Agreement, both Parties shall resolve the issue within 30 days through mutual discussion.

  • If a dispute doesn’t resolve, it should be settled through arbitration.

Notices

  • All the notices shared should be in writing and must be either delivered by post or handed over in person.

  • All the notices should have the party’s address, fax number, and telephone in detail.

  • Notices are only effective upon their receipt or delivery.

Miscellaneous Provisions

  • All the amendments in this Agreement shall be binding when provided in writing and signed by the representatives of both Parties involved.

  • Each party should keep all related documents confidential and not publish them publicly.

Governing Law

All the obligations and rights of the parties involved in this Agreement shall be constructed and governed as per the laws of the (governing country).

In Witness Whereof, this Agreement has been executed on the date, month, and year mentioned above.

​

Signature
MM / DD / YYYY

​

Signature
MM / DD / YYYY

​[Developer.FirstName][Developer.LastName]​

​[Buyer.FirstName][Buyer.LastName]​

​

Signature
MM / DD / YYYY

​[Witness.FirstName][Witness.LastName]​

Solar Power Purchase Agreement Template

Used 4,900 times

Do you require a long-term contract that gives both the buyer and the developer financial security, removing the main obstacles to the construction of renewable facilities? Use this Solar Power Purchase Agreement Template.

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FAQ: Solar Power Purchase Agreement Template

  • The most significant difference between a solar lease and a power purchase agreement is how the amount you pay is calculated. In a solar lease, you pay a fixed monthly rate and receive an unlimited amount of energy. Alternatively, in a power purchase agreement, you pay a fixed rate per kWh of the energy you use. As such, the final monthly amount can vary depending on the amount of energy consumed.

  • A power purchase agreement enables customers to receive low-cost and stable electricity without any upfront cost. The agreement also benefits the owner of the purchased solar system to earn tax credits and generate income from electricity sales.

  • Here’s how this agreement works:

    • A developer incurs costs related to the handling and installation of a solar energy system on a customer’s property.

    • The developer also handles the local installation laws on behalf of the customer.

    • They then sell the energy to the customer but at a fixed rate.

    • As a result, the buyer enjoys a cheap electricity bill and a minimal carbon footprint.

    • The buyer can then choose to pay the bill over time instead of upfront to save time and reduce total expenses.

  • This Agreement can be comprehensive, depending on the requirements of the buyer and purchaser. However, there are a few imperative things that must be a part of this purchase agreement.

    These include:

    • Details of the sales and purchase of solar energy

    • Titles and details of both the parties involved

    • Payments and billing procedures

    • Metering

    • Maintenance and operations

    • Termination and defaults

    • Insurance related to solar energy installation

    • Any resolutions for disputes

    • Any notices involved

    • Any miscellaneous provision

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