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Power Purchase Agreement

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Hi

I'm trying to model a project with a Power Purchase Agreement (PPA). 

The client pays £0 upfront for their system, instead the PPA provider funds the system and charges the building owner a cost per unit of electricity to purchase what they've generated. 

For example they generate 100,000kWh/yr, consume 80,000kWh/yr which they are charged £0.15/kWh therefore the system costs them £12,000/year. After a set period of time. e.g. 20years, they own their system and no longer pay these charges.

The building owner stills purchases electricity from the grid at their usual cost. 

I can see there's options to add a loan, but a PPA is a different funding mechanism. 

 

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