The Solar PPA Agreement is a crucial document in renewable energy transactions within the United States, used when a solar power producer seeks to sell electricity to a purchaser over an extended period, typically 15-25 years. This agreement type has become increasingly important with the growth of renewable energy adoption and includes detailed provisions for energy pricing, delivery specifications, performance guarantees, and regulatory compliance. It addresses both federal requirements and state-specific renewable energy regulations, making it essential for commercial, industrial, and utility-scale solar projects.
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1. Parties: Identification of the power producer and purchaser, including full legal names and addresses
2. Background: Context of the agreement, project overview, and facility details
3. Definitions: Key terms used throughout the agreement including technical and commercial definitions
4. Sale and Purchase of Energy: Core commercial terms including pricing, quantity, and delivery obligations
5. Term and Termination: Duration of agreement, commencement date, and termination rights
6. Delivery Point and Metering: Technical specifications for energy delivery and measurement
7. Facility Construction and Operation: Requirements for construction, commissioning, and ongoing operation
8. Representations and Warranties: Standard and specific warranties from both parties
9. Force Majeure: Events beyond parties' control and their consequences
10. Default and Remedies: Events of default and available remedies for both parties
11. Insurance: Required insurance coverage for both parties
12. Assignment and Change of Control: Rights and restrictions regarding transfer of the agreement
13. Governing Law and Dispute Resolution: Applicable law and mechanism for resolving disputes
1. Environmental Attributes: Treatment of renewable energy credits (RECs) and other environmental benefits - used when RECs are part of the transaction
2. Battery Storage: Terms related to energy storage systems - included when the solar facility includes battery storage
3. Interconnection: Details of grid connection requirements - used when interconnection terms are not covered in a separate agreement
4. Property Rights: Site access and easement rights - included when site access terms are not in a separate agreement
1. Schedule A - Technical Specifications: Detailed facility specifications and performance parameters
2. Schedule B - Pricing Schedule: Detailed pricing mechanisms, calculations, and adjustment provisions
3. Schedule C - Site Description: Legal description of the facility location and site plans
4. Schedule D - Performance Guarantees: Minimum performance requirements and remedies for underperformance
5. Schedule E - Metering Requirements: Specifications for metering equipment and procedures
6. Schedule F - Form of Performance Security: Template for required performance bonds or other security
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