POWER PURCHASE AGREEMENT

What is a Power Purchase Agreement (PPA)?

  • A financial mechanism with a long term contract which allows a real estate asset to purchase renewable energy, particularly solar energy, at a discount to current utility rates
  • The purchaser of the energy has little to no out-of-pocket expense with the building, operating, and maintenance of the system. Your real estate asset can consume the energy or sell it into the grid.

What are the advantages of signing a PPA?

  • No upfront costs for the customer
  • Energy Service Provider (ESP) assumes the risks and responsibilities of ownership
  • Maintenance and monitoring covered by ESP
  • Customer has the option to purchase energy facility at the end of PPA term for fair market value (option to renew at favorable terms)
  • Positive public image by going "green"

Membership Organizations