A PPA is neither better nor worse than own investment — it is a different financial decision. These are the advantages of the PPA model for companies that prefer to preserve liquidity or do not want to take on investment risk:
- Zero upfront investment: Fotovol assumes 100% of the engineering, installation and equipment costs. Your company pays nothing and starts saving from day one.
- Fixed price against market volatility: The price per kWh is fixed in the contract from the outset. In recent years, companies without self-consumption have absorbed increases of up to 200% in their electricity bills. With a PPA that risk disappears.
- No technical or maintenance risk: Fotovol is responsible for the installation's performance throughout the entire contract life. If something fails, we fix it. If production falls below the agreed level, that is our problem.
- EBITDA improvement from month one: The reduction in the electricity bill improves the operating margin immediately without impacting the balance sheet or the company's borrowing capacity.
- Certified sustainability: Energy consumed under a PPA contract is 100% renewable and certifiable, allowing ESG objectives to be met and improving the environmental rating with clients, investors and auditors.
- Purchase option at any time: If at any point you decide you would prefer to own the installation, you can exercise the purchase option and make it your own asset.
Frequently asked questions about photovoltaic PPA contracts
What happens if my company closes or relocates before the contract ends?
The PPA contract is a long-term agreement and includes specific clauses for these scenarios. In the event of relocation, we analyse whether it is possible to move the installation or transfer the contract to the new occupant of the property. At Fotovol we study each case personally before signing so you know exactly your rights and obligations in any scenario.
Who owns the installation during the contract?
During the PPA contract life, Fotovol owns the installation. Your company is the beneficiary of the energy generated at a fixed price. At any time you can exercise the purchase option and acquire the installation, making it your own balance sheet asset.
How is the kWh price calculated in a PPA contract?
The price is fixed at the time of signing and is always lower than the price you currently pay your energy supplier. It is calculated based on the size of the installation, your company's consumption profile and the contract duration. At Fotovol we present you with the exact price before signing, with no small print or surprise indexations.