# Understanding Virtual Power Purchase Agreements (VPPAs) and Their Role in Expanding Solar Energy
Solar energy continues to make waves as one of the most effective renewable energy solutions, and it’s exciting to see innovative ways it is being integrated into everyday life. One noteworthy development in the solar industry is the rising popularity of Virtual Power Purchase Agreements (VPPAs). For those curious about how solar companies are helping municipalities, organizations, and businesses reduce their carbon footprints, VPPAs represent a game-changing opportunity.
### What Is a Virtual Power Purchase Agreement (VPPA)?
Unlike traditional energy procurement methods, a VPPA is a financial agreement rather than a contract to physically receive energy. With a VPPA, an offtaker (such as a city, business, or organization) commits to purchasing renewable energy credits (RECs) tied to a specific solar project, even when the project isn’t connected directly to the local energy grid. This allows solar companies to expand the reach of solar energy and its benefits without the need for the physical delivery of electricity across grids.
For instance, the City of Cambridge has just committed to the nation’s largest-ever municipal VPPA. Through this agreement, they’ll be sourcing renewable energy credits from a solar project located in Champ
Original Article: https://pv-magazine-usa.com/2024/12/18/massachusetts-city-sources-solar-power-from-illinois/
