Five key considerations in rooftop PPAs

Tariff: The tariff structure must be clear in Power Purchase agreement. Tariffs can be fixed for the entire term or variable.
Power purchase: The off-taker is obliged to buy certain amount of energy every month during the PPA term.
Payment: The off-taker must pay a pre-determined tariff rate multiplied by amount of power consumed as measured by the system meter on a monthly basis.
Date of payment: The last date of payment must be at a particular date after the end of the calendar month. The developer may impose a fine for late payment and the fine amount must be pre-determined.
Payment security mechanism: The payment security mechanism must be in place in the form of advance payment and / or a bank guarantee from the off-taker to mitigate delay of payment or default.