5 things to look out for in solar power purchase agreements

PPAs are agreements to sell energy. A solar PPA is where a customer buys the energy output of a solar PV system, but not the system itself. Normally a supplier owns and operates the system, and a customer buys the energy output for a fixed term. It's all the rage because they let customers buy clean energy with low up-front costs.

Here's our rundown of things to look out for in your average solar PPA:

1. Regulations, regulations, regulations: Newsflash: selling energy is highly regulated. Suppliers need an authorisation or exemption from the regulators to sell energy. Generally speaking if the customer keeps a connection with an existing energy retailer (so the PPA isn't the sole supply of energy) an exemption could apply. But it's not straightforward and suppliers need to get this right - read break the law if they don't.