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PPA Solar Lease Template for Australia

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Key Requirements PROMPT example:

PPA Solar Lease

"I need a Solar PPA Lease agreement for a 500kW rooftop installation on a shopping center in Melbourne, with the system to be installed by March 2025, including specific provisions for energy storage and the option for the tenant to purchase the system after 10 years."

Document background
The PPA Solar Lease agreement is designed for situations where a solar system provider wishes to install, own, and operate a solar power system on a customer's property in Australia, selling the generated electricity back to the property owner or occupier. This arrangement enables businesses to access renewable energy without significant upfront capital investment. The document structure accommodates various commercial scenarios while ensuring compliance with Australian energy regulations, property laws, and consumer protection requirements. It includes comprehensive provisions for system installation, maintenance, electricity pricing, property access rights, and risk allocation, making it suitable for both large-scale commercial installations and medium-sized business applications. The agreement type is particularly relevant in the current Australian market where businesses are increasingly seeking sustainable energy solutions while managing capital expenditure.
Suggested Sections

1. Parties: Identification of the solar system owner/lessor and the property owner/electricity purchaser

2. Background: Context of the agreement including property details and purpose of the solar installation

3. Definitions: Defined terms used throughout the agreement including technical and commercial terms

4. Term and Commencement: Duration of both the PPA and lease arrangements, including conditions precedent

5. Grant of Lease: Rights granted for installation and maintenance of the solar system on the property

6. Sale and Purchase of Electricity: Core PPA terms including pricing, minimum purchase commitments, and billing arrangements

7. Installation and Commissioning: Process and requirements for system installation and testing

8. Ownership and Risk: Clear statement of system ownership, risk allocation, and insurance requirements

9. Maintenance and Access: Maintenance obligations and access rights for the system

10. Metering and Billing: Requirements for measuring electricity production and payment terms

11. Environmental Attributes: Ownership and handling of renewable energy certificates and credits

12. Representations and Warranties: Standard warranties and representations from both parties

13. Default and Termination: Events of default, remedies, and termination processes

14. Liability and Indemnities: Risk allocation between parties including liability caps and indemnities

15. Dispute Resolution: Process for resolving disputes between parties

16. General Provisions: Standard boilerplate clauses including notices, assignment, and governing law

Optional Sections

1. Purchase Option: Terms for the customer to purchase the solar system during or at end of term

2. Battery Storage: Additional terms for inclusion of battery storage systems

3. Grid Connection: Specific requirements for grid connection and export arrangements

4. Development Approval: Terms relating to obtaining necessary planning and development approvals

5. Performance Guarantees: Specific performance warranties and remedies

6. Force Majeure: Detailed force majeure provisions if required beyond general provisions

7. Refinancing Rights: Rights of the system owner to refinance the installation

8. Relocation Rights: Terms for system relocation if property circumstances change

Suggested Schedules

1. System Specifications: Technical details of the solar system including size, components, and layout

2. Pricing Schedule: Detailed electricity pricing including rates, adjustments, and minimum payments

3. Installation Timeline: Project timeline including key milestones and dependencies

4. Maintenance Schedule: Planned maintenance activities and frequencies

5. Site Details: Property information including installation location and access points

6. Metering Specifications: Technical requirements for metering equipment

7. Form of Performance Bond: Template for any required performance security

8. Output Forecasts: Expected system generation estimates

9. Insurance Requirements: Detailed insurance obligations for both parties

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok³ÉÈ˰æ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions












































Clauses


































Relevant Industries

Renewable Energy

Real Estate

Commercial Property

Industrial Manufacturing

Retail

Healthcare

Education

Agriculture

Data Centers

Warehousing

Shopping Centers

Office Buildings

Relevant Teams

Legal

Operations

Facilities Management

Finance

Procurement

Risk Management

Property Management

Sustainability

Technical Services

Commercial

Environmental Compliance

Project Management

Relevant Roles

Commercial Manager

Facilities Manager

Energy Manager

Sustainability Director

Property Manager

Operations Manager

Legal Counsel

Financial Controller

Project Manager

Technical Director

Risk Manager

Procurement Manager

Asset Manager

Chief Financial Officer

Chief Operating Officer

Environmental Compliance Manager

Industries










Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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