Commercial Solar PPA Template for Australia

This document template is designed for Commercial Solar PPA arrangements in Australia where a solar system provider installs, owns, and operates a solar photovoltaic system on a commercial customer's premises, selling the generated electricity to the customer. It is particularly suited for businesses looking to reduce their energy costs and carbon footprint without significant upfront capital investment. The agreement incorporates Australian regulatory requirements, including national and state-specific energy laws, and addresses key commercial, technical, and operational aspects of solar power generation and supply. It includes provisions for system installation, performance guarantees, maintenance obligations, pricing structures, and risk allocation, while ensuring compliance with Australian consumer protection and energy market regulations.

1. Parties: Identifies and defines the parties: the Solar System Owner/Provider and the Customer/Offtaker

2. Background: Context of the agreement, including premises details and purpose of the solar installation

3. Definitions: Defines key terms used throughout the agreement including Technical, Financial and Operational terms

4. Term and Termination: Duration of the agreement, conditions for renewal, and termination rights

5. Sale and Purchase of Electricity: Core obligations regarding electricity supply and purchase, including minimum purchase obligations

6. Pricing and Payment: Electricity rate structure, payment terms, billing procedures, and price escalators

7. System Installation: Requirements and process for installing the solar system, including timeframes and approvals

8. System Operation and Maintenance: Responsibilities for system maintenance, performance guarantees, and monitoring

9. Metering and Reporting: Requirements for measuring electricity production and consumption, reporting obligations

10. Access and Security: Rights of access to the premises for installation, maintenance, and removal

11. Risk and Insurance: Allocation of risks, required insurance coverage, and liability provisions

12. Default and Remedies: Events of default, cure periods, and available remedies

13. Force Majeure: Circumstances excusing performance and procedures for force majeure events

14. General Provisions: Standard boilerplate clauses including notices, assignment, governing law