How Power Purchase Agreements Are Helping Australia Meet Its Renewable Energy Targets

20th Jun 17

Written by James Doyle

Australia has some big work to do in the way of catching up with the rest of the world in reaching its solar power and renewable energy commitments. According to the Clean Energy Council, Australia’s commitment to renewables is growing, but we still have a ways to go in reaching our targets. While we generated 17,500 GWh in 2016, our renewable energy target (RET) is 33,000 GWh by 2020. That means we’re just over halfway, and need to make some big improvements. With that in mind, in 2016 the renewable energy use was a total of 17.3 per cent of the total Australian electricity used – which is a hug jump compared to any year since the year 2000. Compare that to 2015, and we only saw 14.6 per cent of total energy come from a renewable source.

So what does this mean for Australian businesses and homeowners who are looking to become a bigger part of the push towards a cleaner, greener future? We are seeing a growing number of industrial solar farms being constructed in our country to take advantage of the incredible sunlight that we have in Australia (it’s among the best places in the world for solar power) – but there’s a lot that businesses can do to take advantage of solar privately.

How to get onboard

A big problem that many people and businesses have faced when hoping to get involved in solar in the past is that it’s an expensive enterprise. And there’s no denying that solar does come at a cost – but a growing number of initiatives are being put in place to allow people to take advantage of solar power. One of these is the Power Purchase Agreement (PPA), and it’s really revolutionised the way in which businesses can think about solar.

What is a power purchase agreement?

This is a long-term contract to buy electricity which is generated by a solar panel that is installed on your property. The features of the solar PPA include:

  • Flexible monthly payments per unit of electricity
  • A reduction in the overall price of electricity
  • Flexible lease terms
  • The solar power company maintains and manages the photovoltaic (solar power) system
  • Agreed prices for electricity

How the power purchase agreement is helping Australia to meet its renewables targets

With the PPA systems in place, it’s now more accessible than ever for businesses to get on board with solar and to get more from the renewables market.


Is this something that you would like to know more about? Please don’t hesitate to get in touch with us today for a chat about a PPA might change the face of your electricity bills forever, while doing something great for the environment.

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    power purchase agreements 7 things you must know when dealing with PPA

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    power purchase agreements 7 things you must know when dealing with PPA