No upfront money. We put all the money to build a solar project at your location. Then you buy the electricity the system produces at price that is lower than the utility price and is locked for a long term.
COVID 19 PPA: To help nonprofit save lots of money in the short term, we offer a PPA where the first 12 months of solar electricity is free. This means the utility bill will be reduced significantly by the solar system and you will have 12 month of free solar electricity. This can represent thousands of dollars saved!
How does it work? The basics
NO MONEY UPFRONT. We will invest all the money to build a solar project. We will design, engineer, permit, build and connect to the grid the solar system. Of course, you have a say on where and when to install it.
THE PRICE IS LOCKED FOR YEARS TO COME. Unlike the utility and a solar supbscription agreement, the price is locked for 25 years. It is not variable. In California, electric rates have gone up on average by 6.7% over the last few decades.
24/7 MONITORING. We monitor the system 24/7 online. At the begining of the month you will get the bill for the solar electricity generated the previous month.
WE TAKE THE RISK. You will only pay for the electricity the solar system generates. If the system does not work and does not generate any electricity, then you won't pay anything for that period. We take the risk that the system will not work.
WHERE IS THE SYSTEM INSTALLED - the purpose of a solar system is generate clean and affordable electricity. The ideal location of solar system is on the roof facing south (east or west are okay too). Out of the way and in many cases not visible. However, some customers like to upgrade to a carport or solar canopy where the solar system provides an additional benefit: shaded parking.
WILL NOT REDUCE YOUR ABILITY TO BORROW. This is not a loan or a lease. This is a service where you agree to buy the electricity we deliver. If the system does not work you don't pay. Unlike a loan or a lease, the solar system will not be in your balance sheet and therefore will not limit your ability to borrow.
FREE MAINTENANCE. We will do all the maintenance for the solar system. You don't need to worry about it and you don't need to pay for it.
CAN I BUY THE SOLAR SYSTEM. Yes, you don't need to go with a power purchase agreement. You can buy outright the solar system. If your entitiy pays significant amount of taxes then it will be able to capture the investment tax credit and bonus depreciation. If not, a PPA allows you to monetize indirectly the investment tax credit and bonus depreciaiton with a lower solar electricity price.
CAN I GO WITH A PPA AND THEN BUY THE SYSTEM. Yes you can after year 6. But why would you want to buy a used solar system where you become responsible for the maintenance and operations? Have you ever consider buying a utility power plant? Because only the owner of the solar system can get the tax credit, no PPA that meets the IRS rules, will have a future guaranteed solar system purchase price. All PPAs will say something along "Fair Market Value as determined by an independent appraiser".
WHAT HAPPENS IF WE MOVE? If you sell the property you can transfer the PPA to the new owner, as long as it qualifies. Most likely the buyer will qualify since it is buying your property. Most commercial property is priced based on a CAP rate which means the lower the cost to operate a facility the higher the price you can sell the facility. Since the solar system can provide electricity price below the utility price, it will reduce the cost to operate the facility and therefore increase the price you can get for your real estate.