Virtual PPA (V-PPA)
The buyer agrees to purchase power indirectly from a renewable project and settles that contract outside their agreements with electricity retailers.
1. Indirect Billing
Billing is completed by a contract for differences so the production and consumption do not have to match in real time.
2. Grid Exposure
The buyer will have to manage exposure to the grid-sourced electricity as well as the grid-sold electricity from the renewable project.
3. Lowest Cost
Production from efficient, scaled off-site developments reduce the cost / kWh and can match all facility consumption.
4. Less Visibility
Without assets on the roof, it requires more marketing prowess to draw awareness to the effort.