A Solar Power Purchase Agreement (PPA) is a financial agreement in which a developer arranges for the design, approval, financing and installation of a solar system on a customer`s property at little or no cost. The developer sells the electricity produced to the host customer at a fixed price, which is usually lower than the retail price of the local utility. This lower electricity price is used to offset the customer`s purchase of electricity from the grid, while the developer receives revenues from these electricity sales, as well as tax credits and other system incentives. PPAs are typically between 10 and 25 years old and the developer remains responsible for the operation and maintenance of the system for the duration of the agreement. At the end of the PPA contract term, a customer may be able to extend the PPA, ask the developer to remove the system, or purchase the solar energy system from the developer. . The model Power Purchase Agreement (PPA) between the contractor and the government organization/power supply and government agencies for the design, manufacture, delivery, assembly, testing and commissioning, including warranty, operation and maintenance of photovoltaic power plants and small grid-connected rooftop solar power plants in the November 2016 RESCO AAE models offers a way to avoid costs initial investments related to the installation of a solar photovoltaic system and simplify the process for the host customer. However, in some states, the PPA model faces regulatory and legislative challenges that developers would regulate as an electric utility. A solar lease is another form of third-party financing that is very similar to a PPA but does not involve the sale of electricity. Instead, customers rent the system like an automobile. In both cases, the system is owned by a third party, while the guest customer enjoys the benefits of solar energy with little or no upfront cost.

These third-party financing models have quickly become the most popular method for customers to reap the benefits of solar energy. Colorado, for example, first entered the market in 2010, and by mid-2011, third-party installations accounted for more than 60 percent of all residential installations, rising to 75 percent in the first half of 2012. This upward trend is evident in all countries that have introduced third-party financing models. Model Memorandum of Understanding (MOU) between the Ministry/Ministries and Public Sector Expert Companies (PSUs) for the development of photovoltaic plants and small rooftop solar power plants connected to the grid and off-grid from November 2016. The ministry/department wants to implement grid-connected rooftop PV projects on the roofs of its buildings/offices, as well as ground-based solar PV systems, and would like to work with power supplies to set up such a solar PV system and provide solar energy at a rate determined by tendering procedures. The Parties shall conclude a Memorandum of Understanding to cooperate and jointly carry out the identification, technical assessment and development of potential sites for the implementation of solar energy projects. .