What is PPA in Solar?

A Power Purchase Agreement (PPA) is a long-term contract between a solar developer and a consumer where:

• The developer installs the solar system

• The customer uses the electricity generated

• Payment is made per unit (₹/kWh)

👉 You don’t own the system — you only pay for the power you use.

How PPA Solar Model Works

• Site survey and energy analysis

• Agreement signing (5–15 years)

• Solar system installation

• System commissioning

• Pay per unit electricity consumed

PPA Solar Rates in India

• Typical rate: As Per Project

• Usually lower than DISCOM rates

• Fixed or slightly escalated annually

👉 Exact rate depends on:

• Project size

• Location

• Electricity consumption

Benefits of PPA Solar Model

• ✅ Zero upfront investment

• ✅ Immediate savings (80–90%)

• ✅ No maintenance cost

• ✅ Long-term fixed electricity price

• ✅ No operational risk

• ✅ Eco-friendly energy solution

Who Should Choose PPA?

• Factories & manufacturing units

• Warehouses & cold storage

• Hotels & hospitals

• Malls & commercial buildings

• Schools & institutions

👉 Best for high electricity consumers

PPA vs CAPEX vs OPEX

ModelInvestmentOwnershipMaintenanceBest ForCAPEXHighCustomerCustomerLong-term ROIOPEXZeroDeveloperDeveloperLow riskPPAZeroDeveloperDeveloperCost saving

Key Terms in PPA Agreement

• Tariff rate (₹/unit)

• Contract duration (5–15 years)

• Minimum consumption clause

• Exit clause / buyout option

• Performance guarantee

Savings Example

If your current electricity rate is ₹8/unit and PPA rate is ₹5/unit:

👉 Savings = ₹3 per unit
👉 For 10,000 units/month = ₹30,000/month saving

PPA Solar Availability in India

PPA solar projects are available across India, subject to:

• State electricity regulations

• Open access policies (for large projects)

• DISCOM approvals

Why Choose Goway Energy?

• Pan India solar solutions provider

• Expertise in commercial & industrial projects

• End-to-end PPA execution

• Reliable system performance

• Strong after-sales support

FAQs

Q1. Is PPA safe for long-term?

Yes, PPA agreements are legally binding and widely used by industries.

Q2. Can I exit a PPA contract?

Yes, but terms depend on agreement conditions.

Q3. Who maintains the system?

The developer handles full maintenance.

Q4. Is PPA available for homes?

Generally no, it is mainly for commercial/industrial users.

Get Free PPA Proposal

Looking for zero investment solar solution for your business?

👉 Contact Goway Energy Technology Pvt. Ltd. for a
FREE site analysis & customized PPA proposal anywhere in India.