What is the difference between a PPA and subscribing shares in a solar SPV?

Renewable Energy

They are two different things. Under a PPA, a user signs an energy purchase contract with the SPV and pays for the energy they consume: they own nothing. By subscribing shares, an investor becomes a shareholder of the company that owns the solar system and shares in the project's profits.

Example: in the same project, the host user signs the PPA with the SPV, and the investor subscribes shares in that SPV. Two different counterparties to the same asset.

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What is the difference between a PPA and subscribing shares in a solar SPV? | FAQ | Circular Urban