On-site Installation PPA
The buyer uses available rooftop or adjacent land to operations to build a solar or, less often, wind facility. It is uncommon for on-site wind as wind resource is highly location specific.
Procured vs. Installed
NO CAPITAL OUTLAY
Purchase the output without having to draw capital from operations.
Never worry about warranties, repairs, or replacement parts.
Utilize low pricing achieved through economies of scale on cheap land.
Solar projects are capital intensive and require access to cheap capital.
Especially when installations are across wide geographic spans and many roofs.
Rooftop installations take more time and cost more money.
Source: National Renewable Energy Laboratory (NREL) U.S. Solar Photovoltaic System Cost Benchmark: Q1 2018
Note: Prices converted from USD to CAD.