Power Purchase Agreement (PPA)

What is it?

DirectLenderMatch classifies Power Purchase Agreement (PPA) under the financing form “Energy purchase contract.” Its typical use in this directory is: Pay for power rather than owning system.

How does it work?

The structure is generally evaluated, supported, or secured using the following basis: Generated energy/project asset. Exact underwriting, eligibility, terms, and availability are provider-specific and can change.

What can it be used for?

Pay for power rather than owning system.

What backs or supports it?

Generated energy/project asset.

Why does this structure exist?

This structure provides a defined way to address the financing need described above. The provider, transaction, collateral, and underwriting context determine how the structure is implemented in practice.

Important considerations

Confirm current costs, risks, licensing, eligibility, collateral treatment, recourse, tax consequences, and availability directly with the provider and appropriate professional advisers. DirectLenderMatch does not compare rates or recommend products.

Is this actually a loan?

Financing, not a conventional loan

Workbook classification: No. Financing forms such as leases, purchases, shared equity, advances, and guarantees may solve a funding need without being conventional loans.

Verified lenders or providers

Direct energy-services / PPA provider

Ameresco

Ameresco documents solar PPAs under which it develops/owns/operates the system and the customer buys the power.

Official evidence page →

Last verified: 2026-08-23

Direct solar ownership/PPA provider

GoodLeap

GoodLeap currently offers lease or power-purchase-agreement structures and owns/maintains the system.

Official evidence page →

Last verified: 2026-08-23

Direct PPA provider

Sunrun

Sunrun currently offers residential solar PPA structures.

Official evidence page →

Last verified: 2026-08-23