A Power Purchase Agreement (PPA) is a contractual agreement between an energy buyer and a renewable energy provider. Under this arrangement, the buyer agrees to purchase electricity generated from renewable sources, such as solar, for a predetermined period at a fixed or competitive rate.
With a power purchase agreement, businesses can harness the benefits of renewable energy without the need for upfront capital investment in solar panels or other infrastructure. Instead, Saba Energy installs, owns, and operates the solar panels on-site or nearby, generating electricity that is fed directly into the grid.
The business then purchases the electricity generated through the PPA, typically at a rate lower than or competitive with grid electricity prices.
PPAs require minimal upfront investment, freeing up capital for other core business activities and investments.
Businesses can enjoy immediate cost savings on energy bills, PPAs often offer energy at a fixed or competitive rate lower than grid prices.
PPAs provide long-term price certainty, shielding businesses from the volatility of energy markets and reducing exposure to future price hikes.
Investing in renewable energy through a PPA can enhance a businessʼs reputation, attract environmentally conscious customers, and create opportunities for sustainable growth.
By purchasing renewable energy through a PPA, businesses can significantly reduce their carbon footprint and demonstrate their commitment to sustainability.
Our team of energy professionals will work closely with you to structure a power purchase agreement that maximises cost savings, drives long-term value and minimises your business’s environmental impact.
