Long term contract between a PPA Provider and Host of a Solar Electric Facility (SEF) for sale-purchase of electricity produced.
Host Responsibilities:
• Sign a PPA with PPA provider for a period of 10~15~20 years
• Pay PPA provider every month for electricity generated from SEF
PPA Provider Responsibilities:
• Sign a PPA with Host
• Fund and build a SEF
• Maintain and operate SEF
• Replace parts of SEF
• Sell electricity produced by SEF to Host at pre-determined KWh rates
• Offer SEF for sale to Host at FMV at the end of the contract or agree to renew the PPA at deeper discounts
Advantages of PPA:
• 0 Capital Cost
• 0 Operation & Maintenance Cost
• 0 Replacement Cost • Lower Demand Charges
• Long Term Predictable Energy Cost
• Ideal for Non-Profits who cannot avail tax incentives
• Option to purchase SEF at a future date based on FMV
• Ideal for For-Profits who can invest their funds in higher IRR projects
• Increase the value of your real estate property
• Environmental benefits without any investment.
• Independent 3rd party online monitoring system and PR Tool