Power Purchase Agreements
Utilize the cash flow advantages of a well-funded PPA to design, build, and fund renewable and energy efficiency improvements at scale
What is a power purchase agreement?
A Power Purchase Agreement is a long-term electricity supply contract between three parties: a developer, an investor, and a customer (you) with roof or land space who is wanting to adopt renewable technologies. The developer designs, builds, and acquires funding for all renewable systems installed, so there are no upfront costs to the customer. The capital from the project comes from the investor. After all systems are installed, the developer then charges the customer a fixed rate each month for the electricity they use from the system. This rate is usually lower than the retail rate the customer’s utility company usually charges for power is.
The customer benefits from lower, predictable electricity costs and the developer benefits from receiving those payments, as well as the tax credits earned from the installation and other government incentives such as grants and Renewable Energy Certificates (RECs).
Benefits of funding your next renewable energy project with a Power Purchase Agreement
Benefits investors get from owning PPA-funded energy systems
What can power purchase agreements fund?
PPAs are available for renewable energy products, and are most often used for larger project applications, predominantly because lower electric rates can be secured when investors are more confident in the project (depending on the state and the investor). Larger project sizes provides more confidence for the investor.
Industries who could benefit most from using a PPA
Can other energy improvements be added to PPAs?
Energy efficiency and storage upgrades are generally not covered by Power Purchase Agreements. If those are involved in a project, they will likely be tacked on but listed as cost-adders. Other energy improvements outside of this scope cannot be added to PPAs.
PPA alternatives your organization should consider based on your specific project needs
Start a PPA-funded project today
Our in-house engineering and business development teams will walk you through the economic impact of your potential project, showing cash-flow projections and other useful data points so you can make a sound decision on whether it’s the right opportunity for your organization.