Investment Education

What Are Large-Scale
Solar PPA Projects?

Understand how Power Purchase Agreements make solar investments a stable, government-backed opportunity for consistent returns.

Power Purchase Agreement (PPA) Explained

A Power Purchase Agreement (PPA) is a long-term contract between a solar project developer and a buyer (typically government utilities) to sell electricity at a predetermined rate.

These contracts guarantee that all electricity generated will be purchased at a fixed price for 25 years, providing predictable revenue streams that make solar projects attractive investments.

In India, state electricity boards are mandated to purchase a certain percentage of renewable energy, creating strong demand and government backing for these projects.

PPA Contract Structure
25-year guaranteed purchase contract
Fixed electricity rates (₹2.4-5 per unit)
Government buyer (State distribution Companies with REIA Intermediaries)
Inflation adjustment mechanisms

Why Invest in Solar PPA Projects?

Solar PPA investments combine the stability of government bonds with the returns of equity investments, backed by essential infrastructure.

Stable Returns

12-15% IRR backed by government contracts with predictable cash flows

Government Backing

Power Purchase Agreements with state electricity boards provide security

Transparent Pricing

Fixed tariffs locked in for 25 years, protecting against inflation

Real Assets

Own a fraction of actual solar infrastructure generating clean energy

Key Features for Investors
  • 25-year government-backed contracts
  • Monthly/quarterly cash distributions
  • Professional asset management
  • Insurance coverage included
  • Environmental impact reporting
  • Exit liquidity options available

Fractional Ownership of Solar Assets

Through AssetGrid, you can own a fraction of large-scale solar projects starting from ₹1 crore. This fractional ownership model makes institutional-grade renewable energy investments accessible to individual investors.

Each project is professionally managed, insured, and monitored, ensuring optimal performance and timely distributions to investors.

Your investment directly contributes to India's renewable energy goals while generating stable returns from essential infrastructure.

Understanding the Risks

Key Risks

  • • Technology and equipment performance risks
  • • Regulatory and policy changes
  • • Weather and natural disaster impacts
  • • Counterparty credit risks

Risk Mitigation

  • • Comprehensive insurance coverage
  • • Government-backed PPA contracts
  • • Professional asset management
  • • Diversified project portfolio

Ready to Explore Solar Investments?

Browse our current opportunities or request access to learn more about investing in government-backed solar projects.