PPA (Power Purchase Agreement)
The contract fixing the tariff, term, offtake obligation and risk allocation between a generator and a buyer — typically 20-25 years for utility solar.
What actually matters in one
The tariff gets the attention; the risk clauses decide the returns. Look at deemed generation (are you paid when the grid curtails you?), change-in-law protection, payment security, termination compensation and the offtaker's credit rating. A ₹2.60 tariff with a reliable offtaker beats ₹2.95 with a defaulting DISCOM.
Captive and group captive
For C&I buyers, group captive structures — 26% equity and 51% consumption by the captive user — unlock open access benefits and avoid some cross-subsidy surcharge, but the shareholding has to be maintained annually or the status lapses.
Related terms
Where this applies
Utility-Scale Solar EPC
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