---
title: What is a power purchase agreement ( PPA )?
description: "A power purchase agreement (PPA) is an arrangement between a customer and a third-party developer, where the developer agrees to install, own, and operate a solar system on the customer’s property. The customer agrees to purchase the electricity generated by…"
url: "https://sparki.co.za/support/what-is-a-power-purchase-agreement-ppa/"
updated: "2024-01-29"
category: General
---

# What is a power purchase agreement ( PPA )?

A power purchase agreement (PPA) is an arrangement between a customer and a third-party developer, where the developer agrees to install, own, and operate a solar system on the customer’s property. The customer agrees to purchase the electricity generated by the system at a fixed rate for a period of time