Integrating the purchase of renewable energy into a company’s core business is becoming standard practice as evidenced in major procurements by some of our country’s leading companies. These companies are using renewable energy investments to gain a significant competitive advantage.
More and more companies are also now facing pressures from all angles to increase their attention to sustainability, reduce greenhouse gas emissions, invest in renewable energy, and prioritize corporate responsibility. These pressures are coming from various key constituents. A Nielsen survey at the end of 2015 found that 66 percent of respondents would pay more for a product or service if the company was committed to positive social and environmental change (nielsen.com).
Solar power plants do not need to be directly connected to the power consumer. In fact, utility-scale solar plants typically inject power in to the existing electrical grid infrastructure and the power is purchased remotely via a power purchase agreement (PPA).
A PPA is a contract between two parties where one party sells electricity and, in some cases, renewable energy certificates (RECs) to another party.
Buyers of the power range from utilities and IPPs, to municipalities, local businesses and even national corporates.
Benefits of Offsite Solar PPAs