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Commercial Solar PPA

Commercial Solar PPA Template for Philippines

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Key Requirements PROMPT example:

Commercial Solar PPA

"I need a Commercial Solar PPA for a 500kW rooftop installation on our manufacturing facility in Manila, with particular emphasis on performance guarantees and early termination rights, as we plan to potentially sell the facility in March 2025."

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Document background
This Commercial Solar PPA template is designed for use in the Philippine market where renewable energy adoption is growing under the framework of the Renewable Energy Act of 2008. It serves as the primary agreement between solar power providers and commercial customers seeking to implement solar energy solutions. The document incorporates key requirements from Philippine energy regulations, including compliance with EPIRA, ERC guidelines, and the Philippine Grid Code. It is specifically structured to address the unique aspects of commercial solar installations, including technical specifications, operational requirements, and risk allocation mechanisms typical in the Philippine market. The Commercial Solar PPA covers essential elements such as energy pricing, performance guarantees, maintenance obligations, and regulatory compliance, while providing flexibility to accommodate various commercial and industrial applications.
Suggested Sections

1. Parties: Identification of the Power Producer (Provider) and the Power Purchaser (Customer), including their legal details and authorized representatives

2. Background: Context of the agreement, including the Provider's capability to install and operate solar facilities and the Customer's desire to purchase solar power

3. Definitions: Definitions of technical, commercial, and legal terms used throughout the agreement

4. Term and Effectiveness: Duration of the agreement, conditions precedent, and effective date

5. Installation and Commissioning: Requirements and timeline for system installation, testing, and commissioning

6. Sale and Purchase of Energy: Core obligations regarding the sale and purchase of solar power, including minimum purchase commitments

7. Price and Payment: Tariff structure, billing procedures, payment terms, and adjustment mechanisms

8. Metering and Monitoring: Requirements for energy measurement, monitoring systems, and data sharing

9. Operation and Maintenance: Responsibilities for system operation, maintenance, and performance guarantees

10. Provider Obligations: Key responsibilities of the Provider including compliance with laws and technical standards

11. Customer Obligations: Key responsibilities of the Customer including site access and maintenance of site conditions

12. Force Majeure: Definition of force majeure events and their consequences

13. Default and Termination: Events of default, cure periods, and termination rights

14. Liability and Indemnification: Allocation of risks, limitations of liability, and indemnification obligations

15. Dispute Resolution: Procedures for resolving disputes, including jurisdiction and governing law

16. General Provisions: Standard contractual provisions including notices, amendments, and assignment

Optional Sections

1. Environmental Attributes: Terms regarding renewable energy certificates and environmental credits, used when the parties wish to specify ownership and trading rights of these attributes

2. Battery Storage: Additional terms for energy storage systems, included when the solar installation includes battery components

3. Grid Connection: Specific provisions regarding grid interconnection, used when the system connects to the main grid rather than being purely behind-the-meter

4. Purchase Option: Terms for the Customer's option to purchase the solar system, included when the parties agree to potential transfer of ownership

5. Site Lease: Terms for the use of the Customer's property, included when a separate lease agreement is not used

6. Insurance: Detailed insurance requirements, included as a separate section when complex insurance arrangements are needed

7. Performance Guarantees: Detailed performance warranties and remedies, included when specific output guarantees are provided

8. Expansion Rights: Terms for potential system expansion, included when future capacity increases are contemplated

Suggested Schedules

1. System Description: Technical specifications of the solar PV system, including capacity, equipment details, and layout

2. Site Details: Description and drawings of the installation site, including access points and existing infrastructure

3. Energy Price Calculation: Detailed methodology for calculating energy prices, including any adjustments and escalators

4. Performance Standards: Technical performance requirements and testing procedures

5. Form of Performance Security: Template for performance bonds or other security instruments

6. Operating Procedures: Detailed procedures for system operation, maintenance, and emergency responses

7. Interconnection Requirements: Technical requirements for grid connection and related procedures

8. Measurement and Verification Plan: Procedures for measuring and verifying energy production and system performance

9. Form of Direct Agreement: Template agreement between Provider, Customer, and financing parties

10. Construction Schedule: Detailed timeline for system construction and commissioning

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Linkedin in social icon imageX social icon image
alex.den.21@genieai.co
Relevant legal definitions
Agreed Rate
Applicable Law
Approvals
Available Capacity
Billing Period
Commercial Operation Date
Commissioning
Commissioning Tests
Connection Point
Contract Year
Customer Event of Default
Deemed Generated Energy
Delivery Point
Design Capacity
Distribution Code
Distribution System
Distribution Utility
Due Date
Effective Date
Emergency
EPC Contract
ERC
Facility
Force Majeure Event
Good Industry Practice
Grid
Grid Code
Interconnection Facilities
kW
kWh
Late Payment Rate
Lenders
Maintenance Outage
Metering Point
Metering System
Minimum Guaranteed Output
Operating Hours
Operating Parameters
Operating Procedures
Output Forecast
Performance Ratio
Performance Security
Planned Outage
Point of Delivery
Power Station
Premises
Provider Event of Default
Prudent Operating Practice
PV System
Renewable Energy Law
Required Commercial Operation Date
Site
Solar Energy
Solar Power Plant
System Acceptance Tests
System Loss
Tariff
Technical Specifications
Term
Testing and Commissioning
Transmission System
Clauses
Definitions
Interpretation
Term and Termination
Conditions Precedent
Installation and Commissioning
Testing
Sale and Purchase Obligations
Pricing
Billing and Payment
Metering
Performance Standards
Operations and Maintenance
Technical Requirements
Grid Connection
Regulatory Compliance
Representations and Warranties
Force Majeure
Change in Law
Default
Cure Rights
Early Termination
Liability and Indemnification
Insurance
Assignment
Confidentiality
Dispute Resolution
Governing Law
Notices
Health and Safety
Environmental Compliance
Site Access
Performance Security
Intellectual Property
Record Keeping
Reporting Requirements
Anti-corruption
Entire Agreement
Amendments
Waiver
Severability
Counterparts
Third Party Rights
Relevant Industries

Manufacturing

Commercial Real Estate

Retail

Industrial

Warehousing

Healthcare

Education

Hospitality

Data Centers

Food Processing

Agriculture

Telecommunications

Relevant Teams

Legal

Finance

Operations

Engineering

Procurement

Risk Management

Sustainability

Facilities Management

Compliance

Project Development

Technical Services

Commercial

Relevant Roles

Chief Executive Officer

Chief Financial Officer

Chief Technical Officer

Energy Manager

Facilities Manager

Sustainability Director

Procurement Manager

Legal Counsel

Risk Manager

Project Manager

Operations Director

Commercial Director

Engineering Manager

Compliance Officer

Energy Analyst

Technical Due Diligence Specialist

Industries
Renewable Energy Act of 2008 (Republic Act No. 9513): Primary legislation governing renewable energy development in the Philippines, including solar power. Establishes the framework for renewable energy development and sets incentives for RE projects.
Electric Power Industry Reform Act of 2001 (EPIRA): Provides the framework for the power industry structure, including rules on power generation, transmission, distribution, and supply.
Energy Regulatory Commission (ERC) Resolution No. 07, Series of 2019: Guidelines for the regulation of solar power generation systems and connection to the distribution grid.
Department of Energy (DOE) Department Circular No. DC2020-04-0008: Guidelines for the qualification and registration of renewable energy power generation facilities including solar PV systems.
Philippine Grid Code: Technical requirements and standards for connecting to the power grid, including specifications for solar power facilities.
Philippine Distribution Code: Rules and requirements for connection to distribution utilities, relevant for commercial solar installations.
Republic Act No. 7394 (Consumer Act): Protects consumer interests in power supply agreements, including pricing and service quality provisions.
National Internal Revenue Code: Tax provisions and incentives applicable to renewable energy projects, including VAT and income tax considerations.
Local Government Code: Requirements for local permits and licenses for solar installations within specific jurisdictions.
Environmental Impact Assessment System (Presidential Decree No. 1586): Environmental compliance requirements for energy projects, including solar installations.
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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