Microsoft 500MW PPA with Sol Systems

Deal Analysis

Microsoft's announced 500MW power purchase agreement (PPA) with Sol Systems represents a significant commitment to renewable energy procurement. The deal underscores Microsoft's dedication to achieving its sustainability goals through large-scale solar energy adoption. Beyond the energy provision, the projects associated with this PPA are designed to generate positive social and environmental impacts, including local training, job creation, community grants, and habitat restoration. This holistic approach aligns with the broader trend of corporations seeking to integrate environmental, social, and governance (ESG) considerations into their energy procurement strategies. The PPA is notable for its substantial capacity (500MW) and the involvement of key players. Microsoft, through its Climate Innovation Fund, acts as the offtaker, demonstrating its active investment in carbon reduction and environmental sustainability. Sol Systems, as the developer, brings expertise in solar project development. While the financial terms remain undisclosed, the scale of the PPA suggests a considerable investment in solar infrastructure. This deal is likely to further incentivize the development of large-scale solar projects and encourage other corporations to pursue similar renewable energy procurement strategies.

500MW solar power purchase agreement
Microsoft Climate Innovation Fund as offtaker
Sol Systems as developer
Focus on local training, jobs, grants, and habitat restoration

Market Context: The solar PPA market is experiencing significant growth, driven by increasing corporate demand for renewable energy and declining solar energy costs. Corporations are increasingly using PPAs to secure long-term, cost-effective renewable energy supplies and meet their sustainability targets.

Source Intelligence

KEY DETAILS

Microsoft balanced 100% of its annual global electricity consumption with renewable energy as of Dec. 31, 2025. Quote: Microsoft reports it has balanced 100% of its annual global electricity consumption with renewable energy as of Dec. 31, 2025.

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Capacity

Since the 2020 announcement to reach carbon negative status , the corporation has contracted 40GW of new renewable energy supply across 26 countries.

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PPA Details

In Japan, the corporation executed one of the first corporate power purchase agreements in the restructured electricity market of that country. The 25MW, 20-year agreement with Shizen represents the first single-asset virtual power purchase agreement executed in the region.

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Announcement

Since the 2020 announcement to reach carbon negative status , the corporation has contracted 40GW of new renewable energy supply across 26 countries.

PARTIES MENTIONED IN SOURCE

S

Sol Systems seller

"Specifically, the corporation signed a 500MW power purchase agreement with Sol Systems and a 250MW agreement with Volt Energy Utility ."

V

Volt Energy Utility seller

"Specifically, the corporation signed a 500MW power purchase agreement with Sol Systems and a 250MW agreement with Volt Energy Utility ."

B

Brookfield developer

"For example, the company has a framework agreement with Brookfield, which involves 10.5GW."

P

Pivot Energy seller

"Historical agreements, such as the 500MW intake with Pivot Energy and the 270MW intake with PowerTrust, are expected to foster employment, energy cost savings, and grid resilience in the United States, Mexico, and Brazil."

P

PowerTrust seller

"Historical agreements, such as the 500MW intake with Pivot Energy and the 270MW intake with PowerTrust, are expected to foster employment, energy cost savings, and grid resilience in the United States, Mexico, and Brazil."

S

Shizen seller

"In Japan, the corporation executed one of the first corporate power purchase agreements in the restructured electricity market of that country. The 25MW, 20-year agreement with Shizen represents the first single-asset virtual power purchase agreement executed in the region."

R

ReNew seller

"In India, the corporation acquired a combined 437MW of solar and wind hybrids from ReNew ."

H

Helion developer

"The company is collaborating with Helion and Constellation Energy on a 50MW fusion project in Washington."

C

Constellation Energy developer

"The company is collaborating with Helion and Constellation Energy on a 50MW fusion project in Washington."

C

Constellation Energy developer

"Furthermore, it is working with Constellation Energy to restart the 835MW Crane Clean Energy Center in Pennsylvania."