Now that you understand a little more about what these acronyms stand for, read on to find out what advantages PPA solutions offer for self-consumption of energy in your company and how they work.
Types of PPA solutions for self-consumption
There are two main types of PPAs on the market:
- PPA off site: is a solar power purchase agreement between a consumer and a large external plant, which is connected to the public electricity grid within the Spanish geography.
In this type of agreement, there are no technical or space limitations in your company's facilities, since it is an outdoor installation.
Therefore, the public grid is used to transport the energy from its production to your company's location, which entails the payment of regulated costs, in addition to the energy consumption itself.
- On-site PPA: in this modality, the solar energy self-consumption plant is part of the consumer's internal network; it is not an external installation. As it is internal, the energy is consumed directly in the same place where it is produced, thus avoiding regulated costs for distribution, transport or tolls.
It is an own self-consumption, which allows to have a final price agreed in the contract with the developer of the photovoltaic plant. Furthermore, at the end of the contract period, the user company becomes the owner of the installation.
Advantagesof PPA solutions for self-consumption .
Both types of PPA share common benefits for the consumer and the environment. Below, we detail the advantages of PPA solutions for self-consumption.
- Fixed or indexed prices: the contracts are established on a long-term basis, with a fixed or indexed price in the energy market (without taking into account the regulated expenses of the off-site modality). It allows you to have your electricity expenses and budget under control and not to be on alert due to the volatility of the energy market prices.
- Renewable energy: self-consumption PPA solutions are contracts for the use of renewable energy for the production of electricity, which contributes to environmental care because part of your electricity consumption comes from a natural and renewable source, which does not pollute, thus reducingCO2 emissions!
- No investment by the user: in the PPA solution contracts for self-consumption, the user does not have to make an investment for access and use of the photovoltaic plant. It is the energy supplier who assumes the financial risk of the project. In other words, in your company, this commitment to renewable energy does not count as a debt, but as an "off balance sheet" service.
- Savings: although it depends on each user, with PPA solutions for self-consumption, the traditional energy bill with non-renewable sources is reduced by around 30%. And these savings are noticeable as soon as the installation is put into operation!
Now you know a little more about PPA solutions for self-consumption and how these contracts can benefit your pocket and contribute to improving the environment. Would you dare to try them and jump on the bandwagon of the energy transition?
