Solar Energy & Power Purchase Agreements
The cost of a solar array has been drastically decreasing in recent years, but some creative marketers have developed an innovative concept that has made solar power attainable to all. A Power Purchase Agreement (or PPA) provides homeowners a way to finance renewable energy with no money down, or purchase needed. This is a long-term bilateral agreement to sell the electricity output to an end consumer or a supplier that will sell the electricity to end consumers.
USE SOLAR POWER WITHOUT BUYING THE PANELS
PPAs are a great tool to comply with renewable energy commitments. It’s stronger than the standard method of buying guarantees of origin because you can really show that you buy electricity from a specific asset.
Signing a PPA shows the company’s commitment to develop renewable energy. A PPA allows you to buy electricity at a lower cost than the electricity that you would buy from the grid, receiving a discounted rate from the solar company.
ON SITE vs OFF SITE
First we need to look at the regulatory context and more specifically explore whether a saving can be made on the regulated part of the electricity bill, the taxes and grid fees.
This depends on whether your produce on-site or off-site:
ON SITE = Rooftop solar installed on your facilities by a third party.
In this case, it is to be investigated whether you need to make capacity payments on the electricity that you consume on-site. Spain, for example, should be a paradise for on-site PPA’s, but the capacity payments on on-site consumption completely kill the potential.
OFF SITE: You buy electricity from a windmill park in the vicinity. In some areas, you can get a discount on grid fees if you buy green electricity. This is a government incentive for renewable energy, and a smart one but only offered in very limited areas.
Whether you finance-to-own your solar array, purchase it outright or decide to go with a PPA with no money down and instant savings, solar energy is here to stay.
It's a GREEN solution in 2 ways:
1. It helps save the planet with renewable energy and limit our need for fossil fuels
2. IT SAVES YOU MONEY!
Saving the planet and saving some money? Win-win... Call ONIT Energy USA to learn more: 682-284-1174