Power Purchase Agreement (PPA)
Clean Power With Little Or No Investment:
Eagle Point Solar has a broad portfolio of PPA projects in municipal, academic and nonprofit industries throughout the Midwest. A Power Purchase Agreement (PPA) is a simple, yet extremely effective finance tool for non-taxable entities to move forward with solar without the upfront cost or having to navigate the current tax credit structure. A PPA allows a third party to own the system and use those incentives, passing the value along in the form of lower electricity rates, directly improving your general fund. This allows you to install solar and start using clean, renewable energy with little to no upfront cost, while keeping capital budgets focused on other priorities.
- Little or no investment
- Flexible term lengths
- Predictable energy costs
- Flexible buy-out terms
- Reduced electricity costs
- No operational costs
There are generally three parties involved in a PPA: the Energy Consumer, the Investor and the Installer. The process involves the Energy Consumer working with the installer to determine the proper design and installation specifications for the system to be installed. Once this is completed, the terms of the PPA can be calculated and an agreement is formed between the Energy Consumer and the Investor. The Investor then pays the installer for the design and installation of the solar array and begins to collect the agreed upon payments for electricity generated (for the agreed term) from the Energy Consumer. Once the term expires, the Energy Consumer typically purchases the project from the Investor for a nominal amount and owns the project outright for many years to come.