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SMP 117: European Commercial Solar Discussion with the Pioneer of PPA Financing in Europe

Solar Maverick Podcast

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The Advantages of PPAs

In the US, what we've seen is like, let's say there was a two percent inflation factor, that sometimes in year eight or year nine of the PPA, that the PPA price is actually higher than the cost of electricity. But that's because like energy has been at historic lows, which I think is going to change going forward. So it's interesting though that you're going from a fixed adjuster that customers are more comfortable with that than a CPI adjusted, except really CPI adjusted factor in the US. It's more complicated if you think about it. And that goes back to why PPAs are advantageous for customers because they could use that money instead of owning the system

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