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Power Purchase Agreements (PPA) Explained: A Guide for Building Owners

A PPA is a contract between a power producer (solar developer) and consumer (building owner). The developer installs and maintains a solar plant on your property. You buy the elec…

PowerNetPro Team6 min readMarch 2026
Power Purchase Agreements (PPA) Explained: A Guide for Building Owners

Key Takeaways

  • A PPA is a contract between a power producer (solar developer) and consumer (building owner). The developer installs and maintains a solar plant on your proper…

  • Tariff: ₹10–12/unit vs grid ₹18–20. May include small annual escalation (1–3%).

  • Verify: clear tariff and escalation formula, performance guarantee percentage, maintenance cost ownership, damage liability framework, early termination condit…

What to Check Before Signing

Verify: clear tariff and escalation formula, performance guarantee percentage, maintenance cost ownership, damage liability framework, early termination conditions, and end-of-term equipment disposition.