Solar Action Basics
If you are a non-profit organization and are thinking of going solar, it might make sense to sign a Power Purchase Agreement (PPA) in order to avoid any upfront expenses while maintaining energy savings. Solar Action offers consulting services to navigate the world of solar finances. We are committed to help you decide on the financing option that makes the most sense for your organization.
Power Purchase Agreement
A Power Purchase Agreement is a legal contract between a non-profit host (you) and an investor (ie. Solar Action). In signing a PPA with us, you agree that Solar Action will install, own, and maintain your solar system for the next 15-25 years.
Solar Action designs an optimal solar installation for your needs, and contracts the work required to build and maintain your system. We make sure to work only with NABCEP certified solar installers in order to ensure a well-built solar system. Solar Action covers normal installation and repair costs.
For the term of the PPA, the host pays for the energy that the solar installation produces; almost always at a discounted rate relative to the fully loaded utility rates. Exceptions include custom installations like carports or consolidated metering, or if the term is shorter than the normal 15-25 years.
Discounted Energy Rates
Unlike most systems, Power Purchase Agreements dictate that you must pay for the energy produced by your solar system until the PPA expires. However, we make sure that the rate you normally pay for solar electricity is less than what you would pay without solar. For example, if your utility charges you 10¢ per kWh, we may charge you 9.5¢ per kWh. We adjust this rate at the beginning of each year to make sure that your rate is consistently below that of your utility.
Length of Power Purchase Agreement
While PPAs typically last between fifteen and twenty-five years, the length of any particular Power Purchase Agreement is determined on an individual basis. We decide the length of a PPA based on the energy production of the system, its estimated cost, and the details of the available tax incentives.
One of the benefits of signing a Power Purchase Agreement as a non-profit is that it allows you to take advantage of tax incentives that you would not otherwise be eligible for. Solar Action takes advantage of tax incentives then passes along savings to you in the form of discounted energy pricing.