Project Development

THIRD-PARTY OWNERSHIP (TPO)

A third-party (or so-called “Solar Service Provider”) invests and installs a solar PV system on the Facility Owner’s roof. As all investment is done by the Solar Service Provider, this model eliminates an upfront investment from the Facility Owner’s end. There are many project settings which can be categorized under the TPO model. The prominent one that is covered in these Guidelines is the “Private-to-Private Power Purchasing Agreement (‘Private PPA’)”.

Private PPA

A Private PPA is a contractual arrangement of purchasing and selling power between a private Solar Service Provider and a Facility Owner. The Solar Service Provider invests and installs a solar PV system on the Facility Owner’s roof. The Solar Service Provider does not sell the system itself to the Facility Owner. Instead, the Solar Service Provider builds, owns and operates the system (BOO) for the Facility Owner. The Solar Service Provider receives revenues from selling electricity generated to the Facility Owner at an agreed rate, typically lower than the local utility rate, but covering the cost of electricity produced by the solar PV system.

Development Scope

Projet Management