The PPA Solar Lease is utilized when a solar developer wishes to install and operate a solar energy system on a customer's property while maintaining ownership of the system. This hybrid agreement structure, common in the United States, allows property owners to benefit from solar energy without capital investment while providing developers with steady revenue streams. The document addresses key aspects including installation rights, energy pricing, maintenance obligations, and property access, while ensuring compliance with both federal and state-specific renewable energy regulations. This type of agreement has become increasingly popular as businesses and property owners seek to reduce energy costs and carbon footprints through solar adoption.
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1. Parties: Identification of the system owner/lessor and the property owner/lessee
2. Background: Context of the agreement and basic premises, including reference to key legislation like PURPA and Federal Power Act
3. Definitions: Key terms used throughout the agreement, including technical and regulatory definitions
4. Lease Terms: Duration, renewal options, and basic commercial terms of the lease
5. Payment Terms: Power purchase rates, escalators, payment schedule, and billing procedures
6. System Installation: Installation requirements, timeline, specifications, and compliance with applicable codes
7. Operation and Maintenance: Responsibilities for system maintenance, performance monitoring, and repairs
8. Insurance and Liability: Required insurance coverage, allocation of risks, and indemnification provisions
9. Termination and Default: Conditions for termination, remedies for default, and early termination fees
1. Purchase Option: Terms for system purchase by lessee, including pricing methodology and exercise procedures
2. Environmental Attributes: Ownership and trading of Renewable Energy Credits (RECs) and other environmental benefits
3. Battery Storage: Terms related to battery storage systems, including additional maintenance and performance requirements
4. Force Majeure: Provisions for unforeseeable circumstances preventing performance of obligations
1. Schedule A - System Specifications: Technical details of the solar system, including equipment specifications and warranties
2. Schedule B - Site Plan: Detailed layout of system installation, including property drawings and access points
3. Schedule C - Payment Schedule: Detailed pricing, payment terms, and rate escalators
4. Schedule D - Performance Guarantees: Specific performance metrics, measurement methodology, and compensation mechanisms
5. Schedule E - Interconnection Requirements: Technical and operational requirements for grid connection
6. Schedule F - Applicable Permits: List of required permits, approvals, and responsible parties
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