Under a virtual power purchase agreement, the service provider builds a facility on property owned by the service recipient.
If a buyer terminates the purchase agreement, without legal reason when all contingencies have been met, sellers can keep any buyer funds paid as earnest money deposits, at the end of the lease, the customer may have the option to purchase the equipment, return the equipment, or extend the contract, depending on the type of lease used. Equally important, with a lease, with a purchase agreement, a homeowner is simply paying for the power it generates.
When you own the system, it can keep working for you long after it pays off the cost of the purchase. Along with the interim agreement and power purchase agreement, negotiations also produced a build-operate-transfer agreement and a lease agreement. For the most part, the scheduling agreement is a long-term purchase agreement with the vendor in which a vendor is bound for supplying of material according to predetermined conditions.
Want to check how your Power Purchase Agreement Processes are performing? You don’t know what you don’t know. Find out with our Power Purchase Agreement Self Assessment Toolkit: