How It Works
Frequently Asked Questions
This sounds too good to be true, what’s the catch?
In the traditional energy model, you pay both for electricity that you use and for the transportation costs of moving the energy from the generator to your business. With a solar Power Purchase Agreement (PPA), you are bypassing all the transportation costs and just paying for the electricity the system generates on your roof.
Ovida Invests in the solar system (asset) and gets a return on the asset through the long-term sale of solar electricity generated by the asset. It is a rare win-win situation for all parties.
Is it really $0 upfront?
Yes. Once you sign our terms and conditions, our installation partners will arrange everything for you. You only pay for the solar energy created on your roof at a low ﬁxed solar PPA rate on a new, separate solar energy bill. What’s better is at the end of the term, you can offer to buy the system for as little as $1.
I already have an electricity retailer, what happens to them?
You still need to have an electricity retailer and be connected to the grid. Solar will help you meet a portion of your energy needs, however, the rest will still have to come from the grid.
What happens if the solar stops working?
It is in Ovida’s interest to have the solar system operating at its best, as you will be charged for the energy it produces, We will be responsible for maintaining the system throughout the term. Normally, if the solar is not producing electricity, you will not be charged.
What if I want to buy the system outright at some point during the contract?
The contract provides an early termination option to give you flexibility. You can offer to buy out the system during the term.
What if the tenant moves premises before the PPA expires?
If the tenant moves out, the tenant can organise for the landowner or the new tenant to enter into a PPA, the tenant can offer to purchase the system or the tenant can terminate the agreement by paying the Early Termination Fee. In the first scenario, Ovida may require the tenant to provide us with a sum equivalent to the Early Termination Fee – if the tenant can organise for the landowner or the new tenant to enter into a PPA within 12 months, we repay this amount to the tenant.
What if the Landlord sells the property?
As Ovida will be contracting with the tenant, the landowner is free to sell the property. As long as the new owner enters into the access licence deed (which only gives Ovida the right to install, maintain and remove the system), there is no issue.
What is a PPA ?
A power purchase agreement (PPA), or electricity power agreement, is a contract between a party, which generates electricity (the provider) and the party looking to purchase electricity (the customer).
In the role of the customer, businesses entering into Power Purchase Agreement arrange for space for the mounting of solar panels. Their PPA provider takes on full financial responsibility for the solar system, including its installation, maintenance, and retains ownership of it. The customer buys electricity generated by this system from the provider, at agreed rates for an agreed term.
What’s the difference between a PPA and other options?
Under a Power Purchase Agreement you are not making repayments to pay the system off, you are simply buying power from the system rather than from the grid, enabling it to sit completely off your balance sheet.
What if I don’t use all the power generated?
Under a Power Purchase Agreement, you are buying all the power the system generates.
The size of system is provided having regard to certain information you gave us about previous use of electricity at your site. However, as you know weather can be unpredictable so this can effect your generation and other variables can impact your potential savings. If there is any excess generation and dependant on your energy retailer and energy tariff, you may be eligible for a feed in tariff by providing excess generation to the gird.
I’m a tenant, do I qualify for a PPA?
Yes you certainly do, however this requires landlord approval. We offer a range of agreement terms suitable for all types of lease lengths.
Who owns the system ?
Under our PPA, Ovida will own the solar system. We will also monitor, maintain and service the system when required. This allows you to focus on what really matters, which is your business.
I’m a landlord what are my risks?
As the agreement is with the tenant, there are no direct financial obligations to the landlord.
It is the tenant’s responsibility to ensure payments are made during the term. However, the landlord needs to give us permission to install the solar system on the roof.