For many people, when looking to change the way you consume energy at your business or in your home, the benefits of Solar PPA are vastly beneficial for this process.
If you are searching for ways in which you can receive clean energy to reduce your negative environmental impact or to reduce your monthly energy costs, then using a Solar PPA will be a great acquisition for you.
What Is Solar PPA?
A Power Purchase Agreement (PPA) is a contractual agreement between parties, usually the producer and the purchaser of the products.
The producer typically coordinates the development, secures the necessary permissions, and oversees the installation of a solar PV system on the customer’s property, often at no expense.
During the duration of the contract, the customer often benefits from a significantly reduced electricity rate, offsetting expenses from their utility provider. At the same time, the developer generates revenue from the sale of the electricity produced.
Typically, these contracts cover a longer period, ranging from 10 to 25 years. Throughout the contract period, the developer remains responsible for operating and maintaining the system.
Upon contract expiration, the customer has the option to remove the system, extend the PPA, or purchase the energy system outright.
How Does Solar PPA Work?
The process of a solar PPA is fairly simple. The first step will be to assess the potential of your site for the placement of solar panels which will include gathering data based on the current energy usage and costs of your home.
Next, you will be given a proposal by the organisation you are collaborating with which will show you the potential savings you will make as well as the reduction to your carbon emissions forecasted over the next few years.
Once a contract is signed, the PPA vendor will install the equipment and once it is energised and operational you will start purchasing power directly from the solar PV system.
Benefits of Solar PPA
There are a wide variety of different benefits that your Solar PPA can provide you with from beginning to end. These agreements will allow you to explore funding options for solar panels and be able to provide you with a clear foundation for the clean energy you provide for years to come.
Read on to find out more about the great benefits of Solar PPAs and what they can do for your energy consumption in the near future.
No Upfront Costs
One of the significant advantages of a Solar PPA is cost savings. Instead of investing in the upfront costs of purchasing and installing a solar energy system, organisations can sign a long-term agreement with a solar provider.
This allows them to benefit from solar power without the initial capital investment. Saving these upfront costs can act as a real incentive for you to invest in your core business instead.
The lack of any upfront investment means that you will be able to have your solar panels installed without the need to worry about payment until the month after they are installed, giving you time to organise your monthly payments.
Savings On Electricity Bills
Over the months after you have agreed to a PPA, you will eventually begin to notice the overall cost of your energy bills has decreased over time. This is because you are using less electricity from your provider and will therefore be required to pay back less to them.
This is a significant plus point for many people as it can provide a way to produce their own clean energy for a lower price than what their providers were offering in the first place. Creating renewable energy like this provides you with a new source of power.
No Maintenance Costs
Under the guidance of most PPAs, you will not be required to pay more money than is necessary for maintenance costs due to the fact that most companies that offer a PPA that is fully inclusive of maintenance services throughout the time of your contract.
This will make sure that your solar panel arrangement will remain in perfect working condition for many years to come, as the vendor is incentivised to maximise system uptime to increase their revenue.
Having this extra security can be a much-needed layer for many people who are looking to invest in solar PPA or solar panelling in general. This is one of the most significant reasons why you may decide to sign a PPA.