With energy costs continuing to rise and the growing need to reduce their carbon footprint, companies are under pressure to find more efficient and sustainable solutions. A PPA may be the answer.
Rising energy costs and pressure to reduce carbon emissions are driving companies to seek sustainable solutions. However, the initial investment in photovoltaic systems remains a significant obstacle. This is where the PPA, Power Purchase Agreement comes in.
In a PPA model, LEFE designs and installs the photovoltaic system while a financial partner covers the investment. The company commits to purchasing the energy produced for 10 to 20 years at a contracted price, which is generally lower than the public grid rate. After the contract ends, the system becomes the company’s property at no additional cost.
Without a PPA: raising equity capital, managing the installation, assuming technical risks, and being responsible for maintenance.
With a PPA:
Higher consumption during daylight hours maximizes the use of the energy produced. Industrial companies with continuous operations are ideal candidates.
A roof with good sun exposure or available land is required for the installation of photovoltaic panels.
Financial partners value companies with stable consumption, operational continuity, and a long-term vision.
Developed in partnership between LEFE and SparkWave Energy, this project delivered concrete results:
The project delivered clean energy, a smaller carbon footprint, greater financial predictability, and energy independence, with zero investment from the company.
Before signing a PPA contract, consider the following points:
A PPA is not ideal for all companies. Some may achieve a higher return by investing directly. For others, especially those seeking to preserve capital and avoid managing energy assets, it may be the smartest solution available.
Talk to our team to assess whether a PPA makes sense for your company.
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