Third Party Solar Power Purchase Agreement Template for United States

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Key Requirements PROMPT example:

Third Party Solar Power Purchase Agreement

"I need a Third Party Solar Power Purchase Agreement for a 500kW rooftop solar installation on our manufacturing facility in California, with a 20-year term starting March 2025 and including battery storage provisions."

Document background
Third Party Solar Power Purchase Agreements have become increasingly popular in the United States as a means to finance solar energy systems without significant upfront capital investment. This type of agreement enables property owners to benefit from solar energy while the provider maintains ownership and responsibility for the system. The document covers installation, operation, maintenance, pricing, and performance guarantees, while complying with federal regulations such as PURPA and ITC requirements, state-specific renewable energy standards, and local permitting regulations. It's particularly useful for commercial, industrial, and institutional customers seeking to reduce energy costs and achieve sustainability goals.
Suggested Sections

1. Parties: Identification of the Solar Provider and Host Customer

2. Background/Recitals: Context of the agreement, including facility location and purpose

3. Definitions: Key terms used throughout the agreement

4. System Installation: Terms regarding installation, timeline, and specifications

5. Purchase and Sale of Electricity: Core terms of electricity sale, including pricing and measurement

6. Term and Termination: Duration of agreement and termination conditions

7. Operating Requirements: System operation, maintenance, and performance guarantees

8. Access Rights: Provider's access rights to the installation site

9. Insurance and Liability: Required insurance coverage and liability allocation

Optional Sections

1. Purchase Option: Terms for customer to purchase system at specified times during the agreement term

2. Environmental Attributes: Ownership and trading rights for Renewable Energy Credits (RECs) and other environmental attributes

3. Storage Systems: Additional terms for battery or other energy storage systems if included in the installation

Suggested Schedules

1. Schedule A - System Description: Technical specifications of the solar system including equipment details and layout

2. Schedule B - Pricing Schedule: Detailed pricing terms, including rate structure and annual escalators

3. Schedule C - Site License: Terms and conditions for use of the installation site

4. Schedule D - Performance Guarantees: Detailed performance metrics, measurement methodology, and remedies

5. Schedule E - Form of Notice: Required notice formats and contact information for all parties

6. Schedule F - Interconnection Requirements: Technical requirements and standards for grid connection

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions
Clauses
Industries

PURPA: Public Utility Regulatory Policies Act - Federal legislation that requires utilities to purchase power from qualifying facilities and establishes framework for independent power producers

Federal Power Act: Primary federal legislation governing the transmission and wholesale sale of electricity in interstate commerce

Investment Tax Credit Requirements: Section of Internal Revenue Code that provides tax incentives for solar energy investments and must be considered in PPA structuring

FERC Regulations: Federal Energy Regulatory Commission rules governing wholesale electricity markets and interstate electricity transmission

Clean Air Act: Federal environmental legislation that may impact solar facility development and operation

NEPA: National Environmental Policy Act requiring environmental impact assessments for certain projects

Inflation Reduction Act 2022: Recent federal legislation providing new solar incentives and tax credits that affect PPA economics

State PUC Regulations: State Public Utility Commission rules governing utility operations and renewable energy projects

State RPS: State Renewable Portfolio Standards setting requirements for renewable energy generation

Net Metering Laws: State-specific regulations governing credit for excess electricity generated by solar installations

State Solar Access Laws: State-specific legislation protecting solar access rights and installation permissions

State Interconnection Requirements: Technical and procedural requirements for connecting solar installations to the grid

State Consumer Protection Laws: Regulations protecting consumer interests in energy contracts and solar installations

Local Zoning Laws: Municipal or county regulations governing solar installation locations and permissions

Local Building Codes: Municipal construction and safety requirements for solar installations

Local Permitting Requirements: Municipal processes and approvals needed for solar installation and operation

Property Tax Regulations: Local and state tax implications for solar installations and equipment

UCC Article 2: Uniform Commercial Code provisions that may apply to solar equipment sales and services

Property Law: Legal framework governing real estate rights, easements, and restrictions relevant to solar installations

Securities Laws: Federal and state regulations that may apply if PPA structure could be considered a security

Insurance Requirements: Mandatory insurance coverage for solar installations and operations

Interconnection Agreements: Contracts and requirements governing connection to local utility grid systems

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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