As upside sharing becomes increasingly popular in offtake agreements, originators need to understand how to price these terms into their PPAs.

With an upside share, the seller agrees to a lower PPA price in exchange for a percentage of the upside associated with the project.

Here, upside refers to instances in which the project sells energy into the grid at a price that is higher than the PPA price.

The chart below shows the impact of different upside share amounts on a 10-year solar PPA at North Hub.

RenewaFi members can now run such analyses themselves using our Price Tracker and Price Calculator.

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