Ekhi

What is an Onsite PPA and how does it work?

A PPA (Power Purchase Agreement) is a long-term renewable energy contract. The provider, in this case Ekhi, installs a renewable power plant on the customer site where the energy will be consumed. The provider assumes installation and maintenance costs, selling the energy produced to the customer for a fixed or variable price for as many years as the contract is valid.

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What are the requirements to be eligible for a PPA?

To be eligible for a PPA, you should be a large corporation with high energy demand, high potential to increase profitability, and you must either have the space on your property to install the renewable plant, or be willing to make the installation offsite.

How are the energy prices determined for an Onsite PPA?

Energy prices for PPAs are typically decided directly between the producer and consumer. Depending on whether you choose a fixed or a variable contract, you will either get pre-agreed fixed prices or a discount off the average consumer energy price, respectively. Ekhi will determine an affordable, long-term price that saves you money over the length of the contract.

What is the minimum time period for an Onsite PPA?

PPAs are designed to be long-term energy service agreements where an energy provider sells energy directly to the end user over a period of many years. Our shortest contracts are 10 years, and we also offer Onsite PPAs up to 30 years. As Ekhi takes on all initial setup costs and maintenance costs and risks, it makes sense for both parties to make long-term agreements.

What happens if I don’t have enough space for an installation?

If you don’t have space to install a renewable plant onsite, you may be better suited to our Virtual Offsite PPA where we select a suitable renewable solution for you within the national territory once you pass our credit risk check. In an Offsite PPA there are no space limitations and we can choose the optimal conditions for maximum renewable production and efficiency.

Am I at risk of experiencing rising prices and changes to regulations?

With an Onsite PPA we typically lock in a fixed price over the length of a contract so you will be protected from fluctuating energy prices. However, some contracts may agree to raise the fixed rate each year in line with inflation (inflation indexation or an agreed rate). Either way, you are protected from typical market price rises.

What does an Onsite PPA contract include?

A PPA contract defines several elements, including energy price, contract length, and minimum energy volume to be consumed. For Onsite PPAs, the client agrees to have the energy production facility installed onsite on their property. Ekhi agrees to assume all technical and financial risks, covering the costs for the installation on the customer site as well as maintenance costs throughout the length of the contract.

When the contract ends can I keep the installation?

Ekhi is the owner of the installation during the term of the agreement, so at the end of a contract there are several options for clients. Ekhi can do one of the following: renew the contract meaning the client keeps the installation for the new contract period, decommission the installation, or transfer the asset for a residual value.

Can I exit my contract before the agreed date?

At Ekhi, we are flexible. We understand that circumstances may alter or unforeseen changes may occur. Therefore, we offer you the option to exit your contract early if you need to. Depending on how early you need to exit the contract, there are different exit options. We will charge you an additional exit fee for each year that you don't complete.

How are Next Generation Grant subsidies applied to this type of contract?

The NextGenerationEU funds offer some subsidies and funding for renewable energy projects across Europe. They do this with the aim of helping corporations reduce emissions and hit climate targets. Usually grants are applied as a specific clause within a PPA contract stating that if the supplier receives an energy subsidy, the consumer will benefit from it by reducing the PPA´s price.

Frequently Asked Questions

Onsite PPA

Categories

Any questions?

Frequently Asked Questions

Onsite PPA

Categories

As a Service Models

Onsite PPA

EPC

Battery Storage

Offsite PPA

Virtual PPA

EV Chargers

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