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Third Party Solar Power Purchase Agreement

Third Party Solar Power Purchase Agreement Template for England and Wales

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Key Requirements PROMPT example:

Third Party Solar Power Purchase Agreement

"I need a Third Party Solar Power Purchase Agreement for a 500kW rooftop solar installation on our warehouse in Manchester, where we will purchase electricity from ABC Solar Ltd at an agreed rate of £0.12/kWh, with the agreement to commence in March 2025."

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Document background
The Third Party Solar Power Purchase Agreement is utilized when a solar provider wishes to install and operate solar panels on a host property, selling the generated electricity to the occupier or owner. This arrangement, governed by English and Welsh law, enables organizations to benefit from solar power without significant upfront capital investment. The agreement covers installation rights, electricity pricing, maintenance responsibilities, performance standards, and term length. It's particularly relevant in the context of increasing renewable energy adoption and corporate sustainability goals, while ensuring compliance with UK energy regulations and environmental requirements.
Suggested Sections

1. Parties: Identification of Generator, Buyer, and any relevant third parties

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

3. Definitions: Key terms used throughout the agreement including technical, commercial and legal definitions

4. Sale and Purchase Obligations: Core obligations regarding electricity supply and purchase, including delivery points and minimum/maximum quantities

5. Pricing and Payment Terms: Price calculation methodology, billing procedures, payment terms and disputed amounts process

6. Term and Termination: Duration of agreement, renewal options, and circumstances for early termination

7. Metering and Reporting: Requirements for measuring and reporting electricity generation, including meter specifications and testing

8. Operation and Maintenance: Responsibilities for maintaining the solar installation and associated equipment

9. Force Majeure: Provisions dealing with circumstances beyond parties' reasonable control

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

11. Insurance: Required insurance coverage for both parties

12. Governing Law and Disputes: Applicable law and dispute resolution procedures

Optional Sections

1. Construction and Installation: Details of initial installation process, timelines, and responsibilities - include when PPA covers installation phase

2. REGOs and Environmental Benefits: Allocation and ownership of renewable energy certificates and environmental attributes

3. Grid Connection: Responsibilities and requirements for grid connection, including compliance with relevant codes

4. Change in Law: Provisions dealing with regulatory changes affecting the agreement

5. Buy-Out Options: Terms for potential purchase of the solar installation by the buyer

Suggested Schedules

1. Technical Specification: Detailed specifications of solar installation, equipment, and technical parameters

2. Pricing Schedule: Detailed pricing mechanisms, calculations, and adjustment formulae

3. Performance Guarantees: Expected generation levels, performance warranties, and remedies for underperformance

4. Site Details: Location specifications, site plans, access arrangements, and easements

5. Metering Specifications: Technical requirements for metering equipment and testing procedures

6. Form of Direct Agreement: Standard form agreement between financiers, generator and buyer

7. Operating Procedures: Detailed procedures for day-to-day operation and maintenance

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok³ÉÈË°æ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

alex.den.21@genieai.co
Relevant legal definitions








































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Relevant Industries
Relevant Teams
Relevant Roles
Industries

Electricity Act 1989: Primary legislation governing electricity generation, transmission, and supply. Covers licensing requirements, grid connection regulations, and consumer protection provisions.

Energy Acts 2004/2008: Framework legislation for renewable energy obligations, Feed-in Tariff schemes, and general energy market regulations.

Climate Change Act 2008: Sets out carbon reduction commitments and environmental targets that impact renewable energy projects.

Ofgem Regulations: Regulatory requirements covering generation licenses, supply licenses, and technical standards for energy projects.

Town and Country Planning Act 1990: Planning legislation relevant for solar installation approval and development permissions.

Grid and Distribution Codes: Technical requirements for grid connection, including Connection and Use of System Code (CUSC) compliance.

Consumer Rights Act 2015: Consumer protection legislation ensuring fair terms and conditions in consumer contracts.

Unfair Contract Terms Act 1977: Legislation controlling unfair terms in contracts, particularly relevant for consumer protection.

Environmental Protection Act 1990: Environmental safeguards and requirements for energy installations.

Law of Property Act 1925: Property law governing rights, easements, and land access for solar installations.

Land Registration Act 2002: Requirements for registering interests in land, relevant for solar installation property rights.

Companies Act 2006: Corporate law requirements affecting commercial contracts and business operations.

Sale of Goods Act 1979: Commercial law principles applicable to equipment supply aspects of solar installations.

Renewable Energy Guarantees of Origin: REGO scheme requirements for certifying renewable energy 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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