Power Purchase Agreement

Power Purchase Agreement


A Power Purchase Agreement is a contract to buy Electricity, based on a set rate that is less than the market rate from your local utility company.


Because your electric rate is locked in, you can protect yourself from the volatility of future utility rate increases.


As a SPPA customer at Total Energy, you only pay for Electricity consumed. Contact us NOW and start saving!!


Australia Map of Solar Energy

Among developed nations Australia is exceptionally well suited for renewable power generation: it has a location relatively near the equator and clear skies. Australia has the highest average solar radiation per square meter of any continent in the world.


The first commercial-scale PV power plant was opened in 2011, the Uterne Solar Power Station, a 1MW capacity grid-connected located 5 km south of Alice Springs in the Northern Territory.



A SPPA (Solar Power Purchase Agreement) is an Electricity Supply agreement between YOU (the Customer) and Total Energy Pty Ltd (electricity provider) where Total Energy Pty Ltd owns, operates and maintains the electricity generation system.


The Customer (Landlord /Tennant) agrees to a Small Energy Generation (SEG) unit being positioned on the roof space or elsewhere on the property and the Customer agrees to purchase from Total Energy Pty Ltd the electricity produced by the SEG for a pre-determined period.


The SPPA allows the Customer to avoid many of the traditional barriers in creating a SEG at their premises, such as:

  1. High up- front capital costs;
  2. System performance risk;
  3. Complex design and permitting processes;
  4. Product quality and warranties; and
  5. Ongoing maintenance costs of the system


A SPPA will reduce energy electricity costs by up to 30%* from the day the SEG system is commissioned.


The SPPA allows for a small rate adjustment on an annual basis, either 3% or CPI, to account for the system efficiency decreases as the system ages and inflation related cost increases for the system operation, monitoring, maintenance and anticipated increase in the grid-delivered electricity.

A SPPA is performance based which means the Customer only pays for what it consumes.
The length of the SPPA Term is tailored to suit the individual Customers requirements and conditions.