A Performance-Based Funding Solution
Solar is a clean, reliable source of energy that boosts the profitability of your business by providing immediate energy savings and protection from increases in grid pricing. A Power Purchase Agreement (PPA) is a pay-for-performance funding option that allows businesses, government agencies and educational institutions to purchase solar electricity with no upfront capital cost. Organizations simply pay for the energy they consume, not the solar equipment itself. It’s a great way to get all the benefits of solar without having to take on ownership or maintenance costs and responsibilities.
Top PPA Benefits
No upfront costs. Customers only pay for the electricity they consume each month — at a significantly lower rate than from the grid.
Immediate savings. Electricity costs are reduced from the first day of operation.
Predictable energy rates and reduced financial risk. Customers benefit from steady, predictable electricity costs that can be specified upfront in a PPA contract.
No ongoing operations and maintenance costs.
Monetizing unused space like a roof, parking lot, or empty land is a benefit to organizations looking to maximize their energy strategy. A Front-of-the-Meter PPA allows customers to lease this unused space to a solar developer creating an additional revenue stream for the organization. The developer owns, utilizes and maintains the system, then sells the electricity generated by the system to the utility grid. This option is available in Massachusetts and Rhode Island.
A Behind-the-Meter PPA pairs the energy created by a solar system with the energy load of a building Behind the meter system allows the owner first to use the energy that is generated by the solar system before using the energy supplied from the grid. It allows customers to use the energy generated by their solar system first, before using energy supplied from the grid. This reduces the amount of energy purchased. Customers simply pay for the electricity generated by the system at a discounted kWh price – typically at a discount to utility pricing – for the term of the contract. As energy rates rise, savings from avoided electricity costs increase.
Plumas Lake School District
Plumas Lake School District worked with SmartWatt to develop a roof-mounted solar PV system at three schools. The project design, developed by SmartWatt, includes a solar PV system that reduces the facilities’ total energy consumption and provides a web-based monitoring system (with solar production dashboard display) for real-time performance monitoring.