Solar Service Agreements | EnergyLink

Solar Service Agreements

Find out how your organization can fund your next large scale solar project with an SSA

What is a Solar Service Agreement?

Solar Service Agreements (SSA) are a third-party funding model for large solar projects in excess of 1 mega-watt where an investor pays for the design and construction of a solar project on behalf of another party (the customer) who is actively looking to install solar to offset their electric use. SSA contracts can be structured as a Power Purchase Agreement (PPA), lease, or levelized PPA.

After installation, the investor provides power generated from the system to the customer at a flat rate that is usually lower than what their local utility charges for electricity. Schools, municipalities, hospitals, public universities, and other government entities benefit most from this model because they cannot take advantage of the tax credits from a solar project.

With an SSA, the investor funds the project, gets the tax credits from the project, and gets predictable power payments from the customer, while the customer gets cheaper power and a solar array installed with cash-flow positivity from day one. Depending on the state, the investor may be able to sell excess power generated from their systems as Solar Renewable Energy Certificates (SRECs) to their utility as well.

Benefits of using an SSA to fund solar projects

Lower electric rates than utility retail rates

No responsibility for maintenance or repairs

No upfront costs to install solar pv system

Benefits investors get from owning SSA-funded energy systems

Predictable cash flow from the customer through electricity payments

Ability to redeem and earn all state and federal solar tax credits from the project

Ability to sell Solar Renewable Energy Certificates (SRECs), depending on the state

Best industries for SSA-funded solar projects

Can other energy improvements be added to Solar Service Agreements?

Energy efficiency and storage upgrades are not covered by Solar Service Agreements. If those are involved in a project, they will need to be included in the contract but listed as cost-adders. If a project involves more than just solar, it may be worth looking into the following two options:

Energy Service Agreement (ESA)

Giving the option to fund combined heat and power as an alternative source of power generation and battery energy storage upgrades.

Managed Energy Service Agreement (MESA)

Using third party funding for an entire energy project, but allowing the opportunity to buy out ownership of all installed systems after 7 years.

Now is the time to invest in solar. Fund your project the right way

EnergyLink’s in-house finance, engineering, and construction teams will walk you through the process to design-build an SSA-funded solar project for your organization that is cash-flow positive from day one.

Start your project

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