Agile Advantage - Monetising your solar assets: Converting pre-purchased systems into power purchase agreements (PPAs)

Introduction

Many businesses and solar asset owners have invested in outright solar system purchases, aiming for long-term energy savings and sustainability. However, tying up capital in owned assets can limit liquidity and financial flexibility. Converting a pre-purchased solar system into a Power Purchase Agreement (PPA) offers a strategic solution to unlock value while maintaining clean energy benefits.

The Challenge: Locked capital in solar assets

Purchasing a solar asset upfront provides energy cost savings but limits immediate financial flexibility. With capital tied up in the system, businesses may struggle to reinvest in other growth initiatives or infrastructure improvements. Additionally, owned systems come with maintenance responsibilities that can add long-term operational costs. This illiquidity prevents asset owners from leveraging their investments for expansion or securing additional financing.

The Solution: Transitioning to a PPA Model

A Power Purchase Agreement (PPA) allows asset owners to sell their existing solar system to an investor or energy service provider while retaining access to the power it generates. The investor then ownership and responsibility for maintenance, and the business buys back electricity at a predetermined rate. This approach provides liquidity, removes operational burdens, and secures stable energy.

Key Benefits of Converting to a PPA

• Immediate access to funds from the asset sale

• Capital can be reinvested into core business operations

• The new owner assumes maintenance, repair, and performance risks

• Reduces long-term operational expenses

• PPAs provide stable electricity pricing over the contract term

• Protection against future energy price volatility

• Business become more attractive to institutional investors

• Allows businesses to expand operations without additional capital raising

• Businesses can potentially maintain off-balance-sheet financing

How agile energy supports PPA transitions

Agile Energy specialises in structuring customised PPA solutions, enabling businesses to convert owned solar assets into capital-generating agreements. Our team works with asset owners to evaluate system value, connect with investors, and negotiate optimal contract terms that align with financial and sustainability goals.

Learn more at https://agileadvantage.au/