Private PPA vs. EPC for solar power plant, which is better?

Last updated: 18 Oct 2023  |  2300 Views  | 

Private PPA vs. EPC for solar power plant, which is better?

Rooftop solar projects are increasingly becoming very popular in factories, hospitals, schools and other places that consume a lot of electricity. This article, we explore the current advantages and challenges of each type of contract between EPC (Turnkey) vs. pricate PPA (Power Purchase Agreement) as follows.

EPC or Turnket contract

In the form of EPC or turnkey contract , there are several advantages. The project owner will receive full returns. Resulting in a shorter payback period than private PPA and not having to worry about buying electricity from another producer. However, the challenges for the ower could be finding investment in the construction, installation as well as operation and maintenance of the solar power plant.

If the project owner does not have funds or limited knowledge doing this kind of project, they may encounter problems in financing, construction, installation, operation and maintenance. This makes it impossible to receive full benefits. Therefore, some owners prefer the second type of contract which is Private PPA.

Private PPA Contract

The advantage of a private PPA project for a solar panel system to generate electricity is that the project owner does not have to invest a single baht himself. because there will be partner companies to invest in, ready to design, install, operate and maintain with a professional team The project owner then purchases electricity from partner companies at a discounted price. which depends on electricity consumption and the installed capacity of the project owner

Doing a project in the form of Private PPA has completely eliminated the limitations of the trading model. because the project owner has no risk of investment, system operation and maintenance Just buy electricity at a reduced price from the normal price over time. or according to the concession contract At the end of the concession contract, the project owner will receive the entire project. It can be considered a win-win for both parties.

Papop Solar provide investment, design and instllation of solar power plant on roof, ground and water (floating). We operate on Build-Operate-Transfer: BOT for businesses and industries, schools, hospitals and univestities in Thailand and ASEAN countries.

If you are interested in solar power plant, kindly contact us at.
E: solar@papop.com
T: +66 570 5580
LINE Official: @papop

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