Prepaid Solar Power Purchase Agreement Template for United States

A Prepaid Solar Power Purchase Agreement is a legal contract used in the United States that establishes terms for the purchase of solar-generated electricity where the customer makes an upfront payment for future power generation. This agreement covers system installation, performance guarantees, maintenance obligations, and ownership rights while adhering to federal and state-specific renewable energy regulations, including FERC requirements and state public utility commission rules.

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What is a Prepaid Solar Power Purchase Agreement?

The Prepaid Solar Power Purchase Agreement is designed for situations where customers prefer to make an upfront payment for future solar power generation rather than monthly payments. This document is particularly relevant in the United States market where solar installations are subject to federal tax incentives and state-specific renewable energy programs. The agreement comprehensively addresses system specifications, installation requirements, performance guarantees, maintenance obligations, and compliance with both federal and state regulations. It provides a framework for long-term solar power generation while protecting both the provider's and customer's interests under applicable U.S. energy laws.

What sections should be included in a Prepaid Solar Power Purchase Agreement?

1. Parties: Identification of system owner/seller and property owner/purchaser

2. Background: Context of the agreement, including property details and system specifications

3. Definitions: Key terms used throughout the agreement including technical and financial terms

4. System Installation: Details of solar system specifications, installation process, and timeline

5. Purchase Price and Payment: Prepayment amount, payment schedule, and any additional charges

6. Term and Termination: Duration of agreement and conditions for early termination

7. Performance Guarantees: Guaranteed energy output and compensation mechanisms

8. Operation and Maintenance: Responsibilities for system maintenance and operations

What sections are optional to include in a Prepaid Solar Power Purchase Agreement?

1. Purchase Option: Terms for purchasing the system outright - include when offering end-of-term purchase options

2. Environmental Attributes: Ownership and transfer of RECs and other environmental benefits - include when environmental credits are relevant to the jurisdiction

3. Insurance Requirements: Specific insurance obligations for both parties - include when additional insurance coverage is required

What schedules should be included in a Prepaid Solar Power Purchase Agreement?

1. Schedule 1 - System Specifications: Detailed technical specifications of the solar system

2. Schedule 2 - Site Plan: Installation location and layout drawings

3. Schedule 3 - Performance Guarantee Calculations: Methodology for calculating guaranteed output and compensation

4. Schedule 4 - Payment Schedule: Detailed breakdown of payment structure and timing

5. Schedule 5 - Maintenance Schedule: Planned maintenance activities and frequency

6. Schedule 6 - Interconnection Agreement: Terms for connecting to the electrical grid

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

Jurisdiction

United States

Publisher

Genie AI

Cost

Free to use

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