Solar Power Purchase Agreement (PPA) – Buy the energy
How Solar PPAs WorkA solar PPA is a financing arrangement that allows businesses or government agencies to purchase solar electricity with no upfront capital cost. To achieve this, a “host” organization provides unused rooftop, land, or parking lot space as the location for a solar installation. A third party PPA provider pays for the cost of the solar installation and assumes all responsibility for ownership, operation, and maintenance after the solar project is complete. As the host organization, you enter into an agreement to purchase the solar electricity produced by the system owned by the PPA provider at a predetermined rate per kilowatt-hour, the same unit of measurement on your standard utility bill.
A well-structured PPA allows you to reduce electricity costs immediately and realize increased savings over time as grid electricity prices rise. Once the PPA contract period expires (typically after 15 - 20 years), you can purchase the system at a reduced price, initiate another PPA, or have the solar installation removed.
SunPower® Solar PPA Benefits
- No Capital Investment
No initial capital investment, since you only pay for the solar electricity that is produced.
- Fixed Energy Rates
A PPA provides a powerful hedge against volatile electricity prices.
- Full-Service Project Management & Maintenance
SunPower designs, develops, and operates your solar energy system from start-to-finish. You have no responsibility for owning, operating or maintaining the solar system equipment.
- Monetize Tax Credits & Solar Incentives
Benefit from solar tax credits, even if your organization has no tax liability to offset. The PPA financier is able to monetize available tax incentives and pass these savings on to you in the form of a lower PPA rate.