What is PPA? Explained in 5 Minutes
Power Purchase Agreement — the contract that lets businesses use solar energy without investing a single baht
What is PPA? — A Simple Explanation
PPA stands for Power Purchase Agreement, or simply a "power buying contract." In plain terms, someone installs a solar panel system on your factory or building rooftop — and you don't pay for the installation. You simply buy the electricity it produces at a rate cheaper than your normal electricity bill.
Think of it this way — PPA is like "renting" a solar system. Compare it to housing: if you buy a house (EPC), you pay a large sum upfront but own it. If you rent (PPA), you pay a monthly fee that's cheaper than mortgage payments, and move in right away.
Simple Analogy
For businesses that want to save on electricity but don't want to invest a large sum, PPA is the smartest choice. You start saving from day one when the system goes live, with zero financial risk.
How Does PPA Work?
01Site Assessment
Engineers survey your roof and analyze your electricity usage to design the most suitable system
02System Installation
The PPA provider invests in and installs the entire solar system. You don't pay a single baht.
03Power Generation
Solar panels start generating electricity from sunlight, feeding power directly into your building's electrical system
04You Use Power
You use solar electricity normally, just like grid power from PEA/MEA, but at a 10-30% discount
05Pay as You Use
You pay for solar electricity based on actual usage, at the discounted rate agreed in the contract. Simple and transparent.
Who is PPA For?
Suitable For
- Factories with large roof areas (1,000+ sqm)
- Businesses that don't want to invest large capital
- Companies wanting immediate electricity savings
- Organizations wanting to reduce carbon footprint for ESG
May Not Be Suitable
- Leased premises with less than 10 years remaining on lease
- Very small roofs (less than 500 sqm)
- Buildings with insufficient roof structural strength
PPA vs EPC — Comparing Two Models
CapSolar PPA — The Best Choice for Your Business
0 THB Investment
We invest everything — from equipment and installation to maintenance
Save 10-30%
Start saving on electricity from day one — no payback period to wait for
25-Year Guarantee
Long-term contract with comprehensive warranty — peace of mind throughout
FAQ
Interested in PPA for Your Business?
Consult with CapSolar experts for free. Get a PPA proposal customized for your business.