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Commercial Solar Power Purchase Agreement Template for England and Wales

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Key Requirements PROMPT example:

Commercial Solar Power Purchase Agreement

"I need a Commercial Solar Power Purchase Agreement for a 5MW solar facility in Manchester, where my manufacturing company will purchase 100% of the generated power for our factory operations, with the agreement starting from March 2025."

Document background
The Commercial Solar Power Purchase Agreement is essential for businesses seeking to secure renewable energy supply while managing long-term electricity costs. This agreement, governed by English and Welsh law, establishes a direct relationship between solar power generators and commercial consumers, defining rights and obligations for both parties. It covers crucial aspects such as pricing, delivery terms, performance standards, and risk allocation. The document is particularly relevant in the context of increasing corporate commitments to renewable energy and sustainability goals, while ensuring compliance with UK energy regulations and environmental standards.
Suggested Sections

1. Parties: Identification and details of the generator/seller and purchaser/buyer

2. Background: Context of the agreement, including facility details and purpose

3. Definitions and Interpretation: Defined terms and interpretation rules used throughout the agreement

4. Sale and Purchase Obligations: Core obligations regarding the sale and purchase of electricity

5. Term and Termination: Duration of agreement and termination provisions

6. Price and Payment: Pricing mechanism, payment terms, and invoicing procedures

7. Metering and Recording: Requirements for measuring and recording electricity generation

8. Operating Obligations: Maintenance, operation, and performance requirements

9. Force Majeure: Definition and consequences of force majeure events

10. Liability and Indemnities: Allocation of risks and responsibilities between parties

Optional Sections

1. Environmental Attributes: Treatment of renewable energy certificates and credits - used when parties want to specify ownership and trading of environmental benefits

2. Construction and Commissioning: Requirements for facility construction and testing - included for new facilities not yet operational

3. Grid Connection: Responsibilities for grid connection and compliance - used when grid connection arrangements need clarification

4. Change in Law: Provisions for handling regulatory changes - included for longer-term agreements where regulatory changes are likely

Suggested Schedules

1. Facility Description: Technical specifications of the solar facility

2. Pricing Schedule: Detailed pricing mechanisms and calculations

3. Operating Parameters: Technical operating requirements and specifications

4. Metering Specifications: Details of metering equipment and procedures

5. Form of Direct Agreement: Standard form for direct agreements with financiers

6. Performance Guarantees: Minimum performance requirements and remedies

7. Site Plan: Drawings and plans of the facility location

8. Testing and Commissioning Procedures: Requirements for facility acceptance

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































Industries

Electricity Act 1989: Primary legislation governing the electricity sector in England and Wales, establishing the licensing regime and regulatory framework

Energy Act 2004: Key legislation establishing renewable energy frameworks and offshore installation regulations

Energy Act 2008: Framework for renewable energy systems and feed-in tariffs

Energy Act 2013: Updates to energy market reform and decarbonization targets

Climate Change Act 2008: Sets legally binding carbon reduction targets and framework for climate change adaptation

Renewables Obligation Order 2015: Main support mechanism for large-scale renewable electricity projects in the UK

Feed-in Tariffs Order 2012: Regulatory framework for small-scale renewable and low-carbon electricity generation

Contracts for Difference Regulations: Framework for long-term contracts to support low-carbon electricity generation

Smart Export Guarantee (SEG) Scheme: Regulations requiring electricity suppliers to pay small-scale generators for exported electricity

Town and Country Planning Act 1990: Primary legislation governing land development and planning permission requirements

Planning and Energy Act 2008: Allows local planning authorities to set renewable energy requirements for new developments

Building Regulations 2010: Standards for building work including energy efficiency and electrical installations

Environmental Protection Act 1990: Framework for environmental protection and waste management

Environmental Permitting Regulations 2016: Regulations governing environmental permits and operations

Grid Code: Technical specifications for connection to and use of the National Electricity Transmission System

Distribution Code: Technical requirements for connection to electricity distribution networks

Connection and Use of System Code (CUSC): Framework agreement for connection to and use of the National Electricity Transmission System

English Common Law Contract Principles: Fundamental principles governing contract formation, interpretation, and enforcement

Sale of Goods Act 1979: Legislation governing contracts for the sale of goods

Unfair Contract Terms Act 1977: Legislation restricting how businesses can exclude or limit their liability

Consumer Rights Act 2015: Protection for consumers in contracts for goods and services

Health and Safety at Work Act 1974: Primary legislation for workplace health and safety requirements

Electricity Safety, Quality and Continuity Regulations 2002: Standards for safety and quality in electricity supply and installations

Ofgem Guidelines: Regulatory requirements and guidance from the Office of Gas and Electricity Markets

EU Retained Law: European Union laws retained in UK legislation post-Brexit affecting energy markets and renewable generation

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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