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Using a PPA makes it possible for a business to enjoy the benefits of solar energy without using valuable capital to purchase, maintain and operate equipment. More
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How can business owners take advantage of solar power when the costs to install and maintain it are still so prohibitive?
A Solar Power Purchase Agreement (PPA) might be the most cost effective solution.
Using a PPA makes it possible for a business to enjoy the benefits of solar energy without using valuable capital to purchase the equipment and without the burden of operating and maintaining unfamiliar equipment. At this time PPAs, sometimes called Solar Service Agreements, are becoming the primary way to finance commercial and institutional solar equipment.
A Power Purchase Agreement (PPA) is a legal contract between a client and an electricity generator. The PPA provider agrees to design, develop, engineer, finance, own, operate, and maintain the business owner’s solar facility for between 10-25 years. You are only billed for the actual electrical output, usually at a discounted price per kWh with locked in rates.
PPA providers contract to install a solar facility for no upfront costs, maintain it regularly, guarantee discounted long-term electricity pricing, and assist your business or organization in reducing its environmental impact.
What are the benefits of choosing a solar PPA?
Net Metering is the process when an electricity user is connected to the grid and to an alternate electricity source such as a solar generating equipment. If that alternate electricity source creates more electricity than is needed by the user, excess power flows to the utility grid. The user is credited for the power flowing to the grid, which in effect, causes the electric meter to "run backwards".
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