Power purchase agreement

A power purchase agreement (PPA) is a contract to sell the electricity from a solar project at a negotiated rate over a fixed period of time. The PPA sets how much the offtaker pays the project company for each unit of energy, so it is the project's source of revenue. A third-party developer usually finances, builds, owns and runs the system, then sells the power to the site host in a behind-the-meter retail deal, or to a utility in a wholesale deal. For homeowners, a PPA is similar to a lease, but the customer pays for the electricity the system actually produces instead of a flat monthly fee. PPA terms usually run 20 to 25 years. Having a PPA in place is a key early requirement for showing that a utility-scale project is viable. The EPC contractor has to design and build the plant to meet the technical conditions in the PPA and in the grid connection agreement. A battery storage system can also be paid for by embedding it in a PPA.

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• sentence 6: support check: partial - The passage calls the PPA an important requirement for viability, but it is India-specific and doesn't say 'utility-scale' or 'key'.
• sentence 8: support check: partial - Evidence lists 'Embedded in PPA' as a recommended storage contract structure, but doesn't explicitly say it's a way of paying for the system. -->