As businesses around the world make a concerted effort to slash their carbon footprint and fulfill their ESG goals, embracing renewable energy sources has surged in popularity.
One of the easiest ways for businesses to smoothly transition to renewable energy without any need for substantial upfront investment is by diving into the realm of Power Purchase Agreements (PPAs).
What is a PPA and how does it work??
A behind-the-meter PPA is an agreement between a business and the renewable energy provider for the installation of a renewable energy system such as solar on the business’s premises. The energy generated by the solar system is consumed on-site, reducing the business’s reliance on grid-supplied electricity.
It is basically a long-term commitment for the business to procure clean energy at a fixed rate, protecting them against tumultuous energy markets and surging energy expenditures.
It is not surprising that PPAs have now evolved into an increasingly favoured option for businesses aiming to whittle down their environmental impact, future-proof their energy supply, and rake in cost savings on their energy bills.