Solar Power Purchase Agreements (PPAs)

Solar energy is a reliable, predictable hedge against rising energy costs. However, the high upfront cost makes solar unattainable to many property owners and users.

The PPA is the leading finance vehicle for solar projects. Under this type of agreement:

  • A third-party developer designs, installs, owns, operates, and maintains the solar photovoltaic (PV) system on the host property
  • A host customer agrees to site the system on its roof or property and purchases the system’s electric output from the solar services provider for a predetermined period
  • The host customer receives stable, and typically lower cost electricity, while the solar services provider acquires financial benefits such as tax credits and income generated from the sale of electricity to the host

PPAs offer numerous benefits, including:

  • Reduced electricity costs
  • Hedge against rising utility costs for greater savings over time
  • No-cost LEED credits. No-cost increase in ENERGY STAR rating
  • No system maintenance risk or responsibility
  • No capital expenditure

To discuss whether a PPA is right for your company, please contact us.