Solar Power Purchase Agreements (PPA) for Businesses in Victoria
Go solar with no upfront system cost – pay only for the energy your on-site system produces at an agreed rate.
What Is a Solar Power Purchase Agreement (PPA)?
A Solar Power Purchase Agreement (PPA) is a long-term agreement where a solar provider funds, owns, and operates a solar system at your site, and your business pays only for the electricity the system generates.
Instead of buying the solar system, you enter into a contract to buy solar energy (measured in kWh) at an agreed price, often lower than your current grid tariff. The provider is responsible for design, installation, monitoring, and maintenance for the duration of the contract, which is typically between 10 and 25 years, depending on the offer.
This makes a PPA a practical option for businesses that want the benefits of solar without tying up capital in owning the asset.
Important: A PPA is a commercial contract. Exact terms, prices, and options vary by provider and should always be reviewed carefully with your legal or financial adviser.
How a Solar PPA Works for Your Business
You can think of a solar PPA as “solar energy as a service” on your own roof or land.
Typical Steps
Site assessment & proposal
Your energy usage, roof or ground area, and operating hours are reviewed. A proposed system size and estimated energy output are prepared.
System funded and installed by the PPA provider
The solar system is installed on your premises with no upfront system cost to your business. The provider (or their funding partner) owns the asset.
You pay for the solar energy the system produces
As the system generates power, you pay an agreed rate per kWh for the solar electricity you use. This rate is usually set to be competitive against your grid tariff for the term of the agreement.
Grid electricity covers the rest
If solar does not meet all your needs at a particular time, you continue to use grid energy as usual. Your retailer bill and PPA charges work alongside each other.
End-of-term options
At the end of the PPA term, typical options may include extending the agreement, buying the system at a fair value, or having it removed. The exact options depend on the specific contract.
Is a PPA Right for Your Site?
A Solar Power Purchase Agreement can be a good fit if:
- You have consistent daytime energy use, such as a dairy farm, factory, warehouse, office, or processing facility.
- You want the benefits of solar but prefer not to invest capital upfront in owning the system.
- You own the premises or have a stable, long-term lease.
- You are looking to manage energy costs and reduce exposure to rising grid prices over time.
- You have sustainability or emissions-reduction goals and need a simple structure to support them.
If your site has very low daytime usage or highly uncertain tenancy, an outright purchase or other finance option may be a better match. We help you review this before recommending a PPA.
PPA vs Buying a Solar System Outright
Solar PPA
(Energy Contract)
- No upfront system purchase cost
- Long-term agreement to buy solar electricity at an agreed rate
- System is owned, monitored, and maintained by the PPA provider
- Can keep capital free for core business investments
Buying Your Solar System
(Asset Ownership)
- You pay for the system via cash or finance
- You receive the full benefit of the energy the system produces
- You (or your service partner) are responsible for maintenance and performance
- May suit businesses wanting full control and long-term asset ownership
Both approaches can reduce your dependence on grid electricity. The right choice depends on your cash flow, balance sheet preferences, and long-term site plans.
Why Arrange Your PPA With Solution with Sam
Solution with Sam brings together engineering, commercial solar experience, and trusted finance partners to help you explore PPA options confidently.
We act as your technical partner, making sure the system design and installation match your real-world energy needs.
FAQs - Power Purchase Agreements (PPA)
No. This page explains Solar Power Purchase Agreements in general terms. A PPA is a legal and commercial contract, and you should always review the details with your own legal and financial advisers before signing anything.
Some providers offer PPAs that include battery storage, while others focus on solar only. Battery options, if available, will be defined in the proposal and contract.
PPAs are usually designed so that the solar energy rate is competitive against the current grid tariff, but actual savings depend on your usage, the agreed rate, future grid prices, and contract terms. It’s important to compare offers carefully.
Yes, in most PPA structures the provider is responsible for monitoring, maintenance, and repairs for the life of the agreement, because they own the system and are paid based on its performance.
In many cases, PPAs can be transferred to a new owner or tenant with their agreement, but this is handled on a case-by-case basis and depends on the contract. Always check these clauses and discuss them with the provider and your adviser.
PPAs are usually sized based on your current and expected daytime usage. If your usage changes significantly, it may affect how much solar energy you use under the PPA. Some providers offer flexibility, but this depends on the contract and should be discussed upfront.
You usually continue to have a grid supply agreement with your retailer. The solar PPA sits alongside it: part of your usage comes from the on-site solar system, and the rest comes from the grid as normal.
In many PPA models, the system is funded, installed, and maintained by the provider with no upfront system cost to your business. You pay only for the solar electricity you use under the agreement.
Most commercial solar PPAs run somewhere between 10 and 25 years, although some providers may offer shorter or more flexible terms. The exact length is defined in the contract.
Under a typical PPA, the solar provider or their funding partner owns the system. Your business buys the energy the system produces but does not own the equipment.
Thinking about a PPA for your farm, warehouse, or commercial site?
Share your latest energy bill and a few site details, and we’ll help you assess whether a Solar Power Purchase Agreement in Victoria is suitable for your business.