Renewable Energy Systems come in many shapes and sizes. Some are powered by solar panels; others by wind or water or a combination. Some are grid-connected; others are independent of utility power lines.

Guaranteed Savings
If you had the choice of buying energy derived from foreign oils with drastic effects on the environment or buying clean renewable energy produced from an on-site photovoltaic system which would you choose?  Most people would choose the cheaper option.
A power purchasing agreement, or PPA, allows a customer to use clean renewable energy at no net cost.   The basic idea behind a PPA is that you, the consumer, will be purchasing the energy produced from the photovoltaic system from our third party financer at a price level which is equal to, or less, than what you are currently paying the utility.  It is the perfect solution for a company that wants to go green but can’t afford the initial negative cash flow.  There are currently two different ways to structure a PPA, the predictable pricing method and the guaranteed savings method.

Predictable Pricing
The predictable pricing method presents the greatest potential for savings.   In a predictable pricing arrangement you are given one price for the energy produced by the system with a fixed rate of escalation.  The way you generate your savings is simple.  While the local utility continues to raise their prices every year by 6% or often times even more, you will be locked in at a lower fixed rate of escalation.

Guaranteed savings

Customers often like the guaranteed savings method because it presents no risk.  Depending on the cost of the system and the local rebates associated with the system, our third party financer will set a price level for your energy that will vary with the price of energy from the utility.

Lease Terms and Buyouts
PPA’s usually have a lease term between 8-10 years.  During this term our third party financer maintains ownership of the system while they sell you the energy.  A PPA contract has options for you to buy the system out at different points throughout the lease term, or at the end of the lease term, at the fair market value of the system.


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