Corporate solar PPAs, or power purchase agreements, offer businesses a long-term contract for electricity by purchasing power directly from the generator. Often, corporate solar PPAs differ from the traditional approach of simply buying electricity from licensed electricity suppliers, and PPAs offer both economic and environmental benefits to their stakeholders, including businesses, developers, and project managers.
A corporate solar PPA refers to a contract between a corporate buyer and a solar power producer to purchase electricity at a pre-agreed price and duration. Corporate solar PPAs can offer organizations many benefits, not limited to those listed below. Here are a few key highlights of corporate solar PPA benefits:
Read: Which States Allow Power Purchase Agreements (PPAs)?
Fixed electricity price
Corporate solar PPAs offer multiple economic benefits, with a primary benefit being that the price of electricity is fixed with a price cap, without any upfront capital. This allows for consistent financial planning for energy costs, as well as the potential to lock in a low energy price for your organization. Fixed energy prices can help your organization by increasing visibility and certainty of future energy costs.
A key element of corporate solar PPAs is their overall positive environmental impact. Sustainability is defined as the ongoing effort and goal to maintain ecological balance with the environment. Much of sustainability consists of preserving natural resources in addition to adapting new processes to reduce or avoid the production of greenhouse gases. There are many benefits to sustainability, both short-term and long-term.
The earth’s ecosystems cannot be maintained or continue to function greenhouse gas production is not substantially reduced. If harmful environmental processes are maintained with no change, it is likely that the earth run out of fossil fuels, huge numbers of animal species will become extinct, and the atmosphere will be irreparably damaged. Clean air and nontoxic atmospheric conditions, growth of resources that can be relied upon, and water quality and cleanliness, are all benefits of sustainability. Organizations can utilize corporate solar PPAs to reach sustainability goals for the overall benefit of the planet through reducing pollution, conserving water and boosting local economies with renewable energy jobs and outreach.
Read: Achieving Energy Efficient Corporate Sustainability in the US
Leverage brand and leadership
Similarly to improving corporate sustainability, corporate solar PPAs can benefit organizations by offering recognition for renewable power achievements. With awards and positive press coverage favoring renewable energy achievements in business and organizational structures, the brand image of your organization can be lifted in the public conscience to attract new clients and improve outreach. Further, organizations can leverage their leadership by fostering partnerships with a small number of reliable, experienced power producers. This allows organizations to maintain focus on core business areas as opposed to owning and operating power generation assets.
Read: How a Solar PPA Can Benefit Your Next Energy Project
Interested in corporate solar PPAs for your organization?
EnergyLink team members are experts in energy project financing. We know how to get the best financial setup for your organization and handle the tedious parts that come with bringing your energy project to life. If you are interested in solar technology, EnergyLink has the capability to handle not only the funding phase but also designing and building. Click the link below to learn more or speak to a team member at (866) 218-0830. Want to stay up to date on the latest energy news? Click the link below to sign up for our newsletter.