An on-site power supply (OPS) arrangement or OPSA allows a customer to use all or part of the electricity from an energy system that is installed on their property. The OPS service provider generally owns the energy system, not the customer. However, where the customer owns the system and has granted an operating arrangement for the OPS system to another person so that they control, use or operate the OPS system for a specified period, that is also considered an OPSA.
The customer gets electricity supply and a bill from a licensed retailer, such as Synergy or Horizon Power, as well as from the OPS system.
A common example of an OPSA is where a business installs their own solar system on a customer’s rooftop. The customer does not pay anything upfront for the system. Sometimes, customers pay for the electricity on a cent per-unit basis. In other cases, customers pay a subscription fee to use electricity provided by the solar system.
At the end of the OPSA contract term, the customer will often take ownership of the energy system, either automatically or for a small fee.