Clear answer, explained.
In a solar Power Purchase Agreement (PPA), the PPA provider installs, owns, and maintains the system. The host facility purchases electricity from the system at the agreed rate and does not carry maintenance responsibility. This is one of the structural advantages of a PPA from the host's perspective — system performance risk rests with the provider, not the facility.
If the system underperforms, the PPA provider is responsible for repair because their revenue is tied to generation. However, PPA agreements vary significantly in how they handle performance guarantees, minimum generation thresholds, and remedy provisions. Some PPAs include performance minimums — if the system generates below a threshold, the rate charged to the host may be adjusted. The specific maintenance responsibilities, response time commitments, and termination rights in underperformance scenarios should be confirmed in the contract before signing.
The host facility's maintenance obligations under a PPA are typically limited to maintaining safe and accessible roof conditions, notifying the PPA provider promptly of any damage or access restrictions, and cooperating with scheduled maintenance access. Lease-related provisions about roof alterations, structural changes, and third-party access should also be reviewed when a PPA is being established on a leased property.
What this means in practice.
- PPA provider owns and maintains the system — host buys electricity only
- System performance risk rests with the provider, not the facility
- Host obligations: roof access, damage notification, maintenance cooperation
- Performance guarantees and minimums vary by PPA contract
- Contract should specify remedy provisions for sustained underperformance
- Lease provisions about roof access should be reviewed for PPA properties
Best-fit environments.
- Commercial properties with existing PPA agreements
- Facilities evaluating PPA vs. outright ownership for a new solar project
- Leased buildings where solar installation involves roof access provisions
- Organizations where capital avoidance is the primary reason for a PPA