PPA (Power Purchase Agreement)

A PPA is the long-term contract under which a consumer buys electricity from a generator at agreed tariffs — the legal backbone of RESCO rooftops and open-access supply.

Key clauses to scrutinise: tariff and escalation, minimum offtake guarantees, plant performance guarantees, termination/buyout schedule, and roof licence terms. Societies should have PPAs vetted before the general body approves.

Part of the HUM Solar Glossary — 75+ plain-language definitions for India’s solar ecosystem, maintained as a neutral reference. Browse all terms →