Frequently Asked Questions

Questions About PPAs
What is a financial PPA, and how does it supply electricity?

A financial PPA, also called a virtual PPA, is a long-term financial agreement between a renewable energy producer (Enery) and your business. It allows you to purchase a fixed volume of clean electricity over a defined period, protecting yourself from price volatility and reducing your corporate carbon footprint.

In a financial PPA, Enery does not physically supply you with electricity, and we do not need to share the same power grid. Instead, the generation and purchase of electricity are based on local market (day-ahead) prices and reconciled at the agreed PPA rate. For more details and pricing examples, please view our PPA information page.

What are the advantages of a PPA?

There are many financial, environmental, and social benefits to a PPA, including:

  • Fixed long-term electricity costs, generally below existing market rates
  • Reduced emissions and a smaller carbon footprint
  • Improved cash flow by replacing a capital investment with an operating cost
  • No construction or operational risks (Enery assumes all responsibility)
  • An enhanced corporate reputation and progress toward ESG targets

 

Does my PPA include Guarantees of Origin (GOs)?

We can generally supply GOs upon request, but they are not mandatory. We design our PPAs to be as transparent and flexible as possible, so there are many different options and features we can discuss during your negotiation process.

Which steps of the value chain are covered during the project development of my electricity supply?

There are various steps involved in developing a renewable energy plant and supplying a PPA, including:

  • Development
  • Construction
  • Project financing
  • Establishing a cost-efficient O&M approach
  • Creating an offtake contract
What is “balancing” and who is responsible for it?

Balancing is the difference between a renewable energy plant’s projected output and its actual production. Low production means additional electricity must be purchased, while excess generation has to be sold on the balancing market, often resulting in additional costs.

There are two main types of PPA profiles, each with a different approach to balancing:

  1. Pay-As-Produced delivery: you agree to purchase all electricity produced by the plant and manage any imbalances.
  2. Pre-defined profile delivery: Enery agrees to deliver pre-defined electricity volumes, and you are obligated to purchase it. Enery is responsible for managing the profile risk and must specify which imbalances (if any) you need to cover.
What are the key terms discussed when creating a PPA?

There are several key terms we need to agree upon during the negotiation process:

Commercial terms:

  • Contract price
  • Annual energy generation volume
  • PPA tenor
  • Contract profile

Technical terms:

  • Allocation of the land where the plant will be built
  • Installed plant capacity
  • Plant grid connection
  • Performance ratio

Other terms:

  • Termination clauses
  • Producer’s and buyer’s security
  • Payment terms
Does Enery also develop onsite solar projects?

Yes, we are currently working with multiple partners to develop onsite solar projects. In these cases, we build the solar PV plant directly near the given building or consumption point and supply electricity via a physical connection. As a result, onsite PPAs generally have fewer transmission losses and lower costs, delivering greater value for the producer and buyer.

Can I increase the capacity of my PPA if my consumption increases?

The price and volume of the electricity provided by your PPA are fixed for the duration of your agreement. However, if you need to increase your supply volume, such as due to building a new factory, you can either renegotiate your existing PPA (if possible) or sign a second agreement for the additional amount.

What types of PPA profiles does Enery offer?

We offer four different PPA models to ensure there’s a perfect solution for your business:

  • Pay-As-Produced: you pay a fixed price for all electricity produced by one of our plants over a defined period.
  • Daily Solar Profile: we define a daily generation profile and agree on a fixed price and volume.
  • Monthly Solar Profile: we define a monthly generation profile and agree on a fixed price and volume.
  • Yearly Baseload: we define an hourly baseload electricity volume over an entire year and agree on a fixed price.
Can I combine two different power sources in one PPA, e.g., a wind farm and a solar PV plant?

Yes, wind and solar can complement each other very well, as solar production is high during the day and in summer, while wind generation often peaks during the night and in winter. Combining these two clean technologies can bring your profile closer to a baseload supply, reducing your profiling costs.

Can my PPA also include energy (battery) storage?

Yes, in addition to combining two different power sources, your PPA can include energy storage, such as a battery co-located with a solar PV plant. The battery can store clean energy during periods of excess production and discharge it in the evening when demand is high. Energy storage also helps to balance your PPA’s electricity profile and increase the share of energy delivered by the contracted plant, reducing your balancing costs.

If the PPA does not cover my entire electricity demand, where does the rest come from?

Typically, a PPA does not cover a consumer’s entire demand. Therefore, your business will remain on its existing supply agreement with a power utility, and the PPA offers additional green electricity delivered indirectly by Enery. In other words, the PPA is “sleeved” via your utility, which covers all of your remaining power demands not met by the PPA.

If my PPA is not “Pay-As-Produced,” how can I guarantee the electricity I receive is renewable?

In a Pay-as-Nominated or solar profile PPA, the electricity you receive may not be produced by the contracted plant in real-time, but instead purchased by Enery on the spot market. Nevertheless, as the PPA off-taker, you receive guarantees of origin for the entire contracted volume. This approach ensures that even if the renewable energy is generated at a different time, the specified amount is still fed into the grid and delivers the same environmental benefit.

Agricultural questions
What type of land is suitable for installing ground-mounted solar PV plants?

The most suitable sites have flat terrain and are at least ten hectares (100,000 m2) in size, with poor soil quality that is no longer suitable for agriculture.

Why should I use my agricultural land to generate renewable electricity?

The EU has set very ambitious targets to combat global warming and committed to making them legally binding. The targets include reducing greenhouse gas emissions by at least 55% by 2030 (compared to 1990 levels) and achieving net-zero emissions by 2050. As a carbon-free energy source, solar PV will play a significant role in achieving these targets. However, while rooftop solar PV systems are effective, they alone cannot meet Europe’s growing electricity demands. Therefore, it’s critical to utilize low-quality agricultural land to generate renewable energy on a large scale.

In addition, many European farms already produce energy in the form of biofuels. Alternatively, green hydrogen made using solar PV has around ten times the energy density of biofuel, making solar PV a far more efficient use of the available land area.

How much of my agricultural land will a ground-mounted solar PV plant cover?

We install our solar PV plants using simple ground-mounted frames. They are secured by pilings that are driven into the ground at specific points. As a result, only around 1% of the total land area is actually covered or “sealed” when installing a new project.

Can I continue farming my land with machines once the solar PV plant is completed?

This type of “dual-use” farming is not only possible – we think it’s a great idea. You are encouraged to continue your farming activities, provided the crops don’t shade the solar panels or have any other adverse effects.

Can I still farm livestock between the rows of solar panels?

It is possible to rear livestock on the same land as solar panels, although some breeds are more suitable than others. For example, Enery actively encourages (and even subsidizes) sheep farming and beekeeping, both of which work well in tandem with solar energy generation.

Do ground-mounted solar PV plants impact agriculture, biodiversity, or wildlife habitats?

Unlike most forms of energy generation, ground-mounted solar panels have a minimal impact on their surroundings, and can actually enhance plant and wildlife habitats. For example, the shaded areas beneath the solar panels can provide refuge for many animals during the hot summer months. In addition, ground-mounted solar PV plants are often ideal environments for keeping bees, as the absence of pesticides can vastly improve their health and honey quality.

Can I still use the area for hunting?

The solar PV plant provides a safe refuge for local wild animals, and hunting is not permitted on the properties that house our systems. In Austria, however, these areas a technically classified as private hunting grounds.

Roof vs. ground-mounted installations
Why is it better to install ground-mounted solar panels in a field than on a rooftop?

While both systems produce 100% clean energy, studies have shown that installing solar panels solely on rooftops will not be enough to reach the EU’s and national climate targets.

What advantages do ground-mounted systems have over roof-mounted systems?

It is far cheaper to install ground-mounted solar panels in open fields than on rooftops, as the fixed costs such as planning, connection, and documentation are the same regardless of the system size. This means that larger solar PV plants benefit from economies of scale and produce clean energy at a significantly lower cost.

In addition, many rooftop PV systems are obstructed by shade or do not have the right pitch or orientation to work efficiently. Ground-mounted PV systems do not have these problems as we can design the mounting frames to maximize the system’s energy generation throughout the year.

Is government support needed to install or operate ground-mounted solar PV plants?

Unlike rooftop solar systems, ground-mounted PV plants don’t require state support. This means they produce clean electricity without relying on taxpayer funding.

What advantages do ground-mounted solar PV plants have compared to other forms of renewable energy generation?

Solar energy is free, renewable, creates no noise or emissions, and requires very little maintenance. Solar PV plants also have lifespans of up to 40 years, making them reliable clean energy sources that are completely safe for people, animals, and the environment.

Solar PV Contracts and Agreements
Why is it necessary to have a preliminary agreement before construction begins?

Undertaking a solar PV project requires significant work on Enery’s part, including planning, documentation, permitting, and many other considerations. Therefore, we ensure there is a preliminary agreement in place during the planning stage to protect the interests of both parties.

What does the usage and easement agreement entail?

We typically lease land for 30 to 40 years, which is the lifespan of a solar PV plant. The rental payments you receive for your land are adjusted for inflation over the contract term. As the landowner, you retain sole ownership of your property for the duration of the leasing agreement.

What happens to the solar PV plant at the end of the usage and easement agreement?

If the two parties decide not to extend the agreement, we will remove the solar PV system in its entirety and you are free to repurpose the land.

Do solar PV plants need maintenance? Am I responsible for any other costs?

While the solar PV plant is in operation, the surrounding area must be mowed and maintained to prevent shade from reducing performance. As the system owner, Enery performs all of this work and covers all associated costs.

What happens to the solar PV plant if Enery were to go bankrupt?

In the unlikely event of a bankruptcy, a receiver would assume administrative control of the solar PV plant. After restructuring the debt, the receiver would likely continue running the plant, either directly or by selling it to a new owner. In rare cases, the receiver may sell the plant’s components (such as panels, inverters, and mounting frames) and use the funds to completely remove the system, enabling you to repurpose the land.

Why is Enery entitled to transfer rights and obligations to various third parties?

As a solar developer, we need this right to advance our projects successfully. We finance our solar PV plants using equity and debt capital, the latter of which can only be obtained by pledging certain rights and securities to the debt providers.

Project-Specific Questions
What form will my solar PV project take?

Our solar PV plants are ground-mounted in large open spaces. We install the solar panels on steel framing systems arranged in several neat rows.

What happens to the electricity generated by the system?

The system feeds electricity into the local power grid in the same way as a traditional power station. To achieve this, we ensure your site already has a suitable connection point in the immediate vicinity.

Will the solar PV plant be fenced off?

Yes – to ensure that unauthorized people do not have access to the solar PV plant. As the system generates large amounts of electricity, the fence also maintains safety and helps to prevent damage or theft.

How long will it take to install the solar PV plant?

We work to install every solar PV plant as quickly as possible, regardless of its size. As a result, we complete most projects within six to eight months.

Will you protect the appearance of the surroundings, such as by screening off the plant?

As a leading solar developer, we make every effort to satisfy the requests of all parties involved. Therefore, on an individual basis, we determine whether the solar PV plant needs to be screened off and make any necessary arrangements.

Questions About Solar PV Technology
Are solar PV plants environmentally friendly?

Yes they are. Unlike traditional fossil fuel power stations, solar PV plants create no noise, greenhouse gases, or pollutants of any kind. The energy used to manufacture the solar panels is also recouped within their first few years of operation, meaning they have a negative carbon footprint. In addition, improvements in technology and scale continually reduce the amount of energy and materials needed to make solar panels, and they are now also completely recyclable.

How long does a solar PV plant last?

The life of a typical solar PV plant is around 40 years, which corresponds to the duration of your lease. As the system owner and operator, Enery is responsible for decommissioning and removing the plant at the end of its life.

Do solar PV plants have any adverse environmental impacts?

With no noise, emissions, or moving parts, solar PV plants have a minimal impact on their surroundings. They blend in well with the landscape and require no major earthworks or land disruptions. Compared to other forms of renewable energy generation such as wind or hydropower, solar PV plants also help to increase biodiversity and create new animal habitats.