Third-Party Ownership model for Solar +energy storage systems
In case of third party ownership model for solar + energy storage systems, the solar + energy storage system is owned, operated, and maintained by a third-party, which provides specific solar + energy storage services according to a contractual arrangement/PPA. This process is very similar to power purchase agreements signed with independent power producers. Third-Party ownership contracts similar to those offered to solar power plants, typically lasting for 20–25 years, generally include the following key terms:
- The off-taker holds the dispatch rights for charging and discharging the energy storage system (ESS).
- The seller earns a fixed capacity payment ($/kW-month) and a variable payment for operation and maintenance (O&M) per MWh delivered ($/MWh).
- In return for the capacity payment, the seller provides assurance of a specified degree of availability of the
- The seller provides an efficiency