How the model works
In a PPA/contracting type contract, a third party finances, installs and operates the system. You buy the electricity produced at a contractual rate over a long period.
Main advantage: zero initial CAPEX
The main benefit is the preservation of cash flow. This is particularly useful for companies that prefer to invest their capital in their main activity.
Main limit: profitability captured by the third party
In return, part of the value of solar (subsidies, surplus, margin on kWh) is captured by the operator. Before signing, always compare the total cost over 20 years with a direct purchase scenario.