Industry Analysis
Mar 27, 2024
PPA Term Lengths
Offtakers searched for 1 to 20 years PPAs on RenewaFi last year.
The average was around 7.
The bid term lengths were, on average, shorter than the offer term lengths.
Sellers tend to want longer terms as they make projects easier to finance.
Offtakers, however, have been skeptical of longer PPA terms as forward curves show increasingly lower prices further into the future and the solar shape becomes less valuable.
