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POWER PURCHASE AGREEMENTS (PPA's)


Solar Power Purchase Agreements (PPAs) are a financial agreement in which a third-party developer owns, operates and maintains a solar photovoltaic (PV) array on a host client's property. The host client purchases the generated electricity at a reduced rate from the solar services provider for a predetermined period. The financial arrangement allows the host client a level of predictability to hedge against rising utility costs by locking in a portion of their monthly operational costs. With significant price increases expected for electric rate tariffs, receiving all or some of a building's electricity at a low predictable rate can translate into significant savings. The host client has zero outlay of capital and can take advantage of the marketability of clean renewable energy. The developer benefits from the tax incentives and income generated from the sale of electricity. PPAs have become the most accessible way for businesses and non-profits to utilize solar energy.

Performance Contracting


Performance contracting allows a project to be paid for in the future using the savings accrued by the implementation of the project today. Here's how it works: The customer signs an agreement with a private contractor. The contractor then drafts a plan for the design and implementation of a project that will, over a certain period of time, exact savings that generally surpass all of the project costs. The contractor is paid according to the performance savings of the project. If the project does not produce the predicted savings, then the private contractor is responsible for the additional costs. In this way, the private contractor takes full responsibility for any risks associated with the project.

Lease Programs


Lease programs allow customers to take advantage of energy savings without having to pay the high up-front cost associated with purchasing the system. Customers do not actually own the system but, instead, pay a lower monthly rate to the contractor in order to take advantage of the energy savings from the system. In this way, customers are able to instantly reduce their monthly energy bill and are not responsible for any damage or maintenance to the system.