Western Australia is Cutting Red Tape on Solar Power Purchase Agreement

Jon Capistrano
Jon Capistrano
August 26, 2016

The Western Australian Government has announced it is making solar Power Purchase Agreements (PPA) more accessible in the state according to Energy Matters. 

Energy Minister Mike Nahan said his government will be making it easier for solar PPA providers to operate in Western Australia by allowing companies to apply directly to the Public Utilities Office for exemptions from the requirement to hold a retail license in order to sell electricity to consumers. A solar PPA arrangement is commonly associated with commercial Solar in Australia. Its where a long term contract is established to purchase electricity generated by a solar panel system installed on a customer’s property. The solar company retains ownership of the system, but also assumes the burden of ownership, providing maintenance and other needed repairs. Usually, there’s no upfront cost to the customer for the installation of a system under a solar PPA.

Its where a long term contract is established to purchase electricity generated by a solar panel system installed on a customer’s property. The solar company retains ownership of the system, but also assumes the burden of ownership, providing maintenance and other needed repairs. Usually, there’s no upfront cost to the customer for the installation of a system under a solar PPA.

At the end of the contract and depending on the agreed arrangement, the customer may be able to buy or purchase the system outright at a reduced cost. By creating this exemption, the barriers are brought down and the red tape eliminated, reducing the regulatory costs for solar PPA providers to offer electricity services at a very affordable price. Also, the state’s Renewable Energy Buyback Scheme or Western Australia’s solar feed-in-tariff, will be available to eligible customers who export excess electricity back into the grid.

With the fast price decrease of solar in Western Australia, solar PPAs are commonly benefiting in conjunction with large systems. WA presently boasts around 206,000 small scale (100kW or less) solar installations. The ratio is about one system for every 12 people in the state.

Click here to read the full story on Energy Matters

Featured Image Credit: Takver

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