Solar Power Purchase Agreement: The Right Decision for the Right Customer

The solar industry saw rapid growth with the advent of the Power Purchase Agreement (PPA), a method of financing a solar photovoltaic (PV) system.  A PPA is an agreement in which a solar developer manages and executes the design, permitting, finance, installation, maintenance and monitoring of a PV system on a customer's property or roof at little to no upfront cost. The solar developer or another third party is the system owner that sells the power generated directly to the host customer at a fixed rate—usually lower than the local utility’s retail rate. With annual price hikes by local utilities and energy price volatility, customers find a predictable energy cost attractive.

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Posted in: Solar Energy, Renewable Energy, PPA | Leave a reply

Understanding Capacity Charges and the Cost of Energy Procurement

If your business is located in a capacity energy market, then capacity charges may constitute a significant portion of your electricity expenses. Capacity charges typically make up about 25% of your total expenses, but they can vary depending on region, facility load profile and energy year.

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Posted in: Solar Energy, Energy Costs | Leave a reply

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