Power Purchase Agreement
A solar power purchase agreement (PPA) is a financial agreement where a developer arranges for the design, permitting, financing and installation of a solar energy system on a customer’s property at little to no cost. The developer sells the power generated to the host customer at a fixed rate that is typically lower than the local utility’s retail rate. This lower electricity price serves to offset the customer’s purchase of electricity from the grid while the developer receives the income from these sales of electricity as well as any tax credits and other incentives generated from the system.
PPAs usually range from 10 to 25 years and the manufacturer is responsible for the maintenance of the product for that period of time. By the end of the term, the client holds the power to extend the PPA, even have the manufacturer remove the system or buy the solar enegy system from the manufacturer.
Walden’s engineering services enable us to tackle a wide range of engineering projects. Our engineering expertise and ability to tailor our services to shrinking budgets makes us a perfect fit for any municipality’s needs.
While the Solar instillation is always profitable the special case of PPA becomes stronger with benifits giver undder:
- Minimum upfront capital costs
- Low energy costs
- Limited risk
- Benefits of tax credits
- Rise in property value