Power Purchase Agreements (PPA)
Access Clean Energy — Without Owning the System
A Power Purchase Agreement (PPA) is a performance-based energy supply contract where you purchase solar electricity at a predetermined rate, without investing in the solar infrastructure. It’s an ideal solution for businesses and facilities that want to reduce their energy costs and carbon footprint, but prefer to avoid the responsibility of owning or maintaining a solar asset.
Solar EPC Development Ltd. offers flexible PPA structures tailored to your energy consumption profile, financial strategy, and risks.
How a PPA Works
- We finance, install, and operate the solar system on your site (or off-site for select projects)
- You purchase the generated electricity at an agreed-upon tariff over a contract period (typically 10–20 years)
- You benefit from predictable, lower-cost renewable energy — without CAPEX, technical burden, or system risk
- All performance, maintenance, insurance, and compliance responsibilities rest with us
Our PPA Models
We understand that energy needs vary by business size, industry, and financial planning. That’s why we offer three core PPA models
Fixed Tariff PPA
Clarity & Budget Certainty
- You pay a fixed Tk./kWh tariff throughout the contract duration
- Ideal for companies that prioritize financial predictability
- Shields you from grid tariff volatility and price inflation
- Often structured with 10–15-year tenures
Example: If your current utility tariff is Tk. 10/kWh, a fixed PPA might offer solar at Tk. 7.50/kWh for the next 15 years locked in from day one.
Escalated Tariff PPA
Lower Initial Cost, Aligned with Business Growth
- Starts with a lower base tariff
- Tariff increases annually at a pre-agreed rate (typically 2–5%)
- Eases early cash flow burdens while aligning with future scalability
- Useful for fast-growing businesses expecting higher energy demand
Example: Begin with Tk. 6.80/kWh in Year 1, with a 3% annual increase, staying below grid escalation
Hybrid Tariff PPA
Balanced Approach for Long-Term Value
- Combines fixed and variable pricing
- A base tariff with limited escalations over time
- Offers both initial savings and long-term affordability
- Reduces risk while optimizing total lifetime energy costs
Best suited for businesses with dynamic financial planning or multi-site operations.
Why Choose a PPA?
| Benefit | Description |
|---|---|
| No Upfront Investment | Zero CAPEX — Solar EPC covers full installation and asset costs |
| Operational Simplicity | No maintenance, no insurance, no asset depreciation on your books |
| Instant Cost Savings | PPA tariffs are typically 10–30% lower than current grid rates |
| Sustainability Benefits | Lower Scope 2 emissions and improved ESG performance |
| Custom Terms | 10–20 year terms with built-in performance guarantees |
Ideal For:
1. Factories
Factories, warehouses, and industrial units with large roofs or land space.
2. Office & Campus
Commercial office buildings or campuses with high daytime consumption.
3. Export Business
Export businesses with green rules to follow.
4. Marketing tool
Strong marketing and educational tool to show the importance of creating a better future.
Frequently Asked Questions (FAQ)
Early termination clauses vary by contract. We offer flexible exit terms depending on the project scale and tenure.
You may choose to renew the PPA, purchase the system at a depreciated value, or have it decommissioned at no cost.
Yes. Our team handles all regulatory approvals, including NEM integration where applicable.
