OUR TYPICAL PPA CLIENT
First, Client sends us site specifications such as available square footage and electricity consumption. Then, we submit a proposal that outlines the commercial terms. If the terms are acceptable to client, then we send a power purchase agreement (“PPA”) to client for review. Once an agreement is reached on the PPA, we reach out to investors to finance the project.
How long does it take to install the system? |
After financial closing, it takes approximately 3-4 months to deploy the system. There are no major technical challenges to installation.
What are the incentives provided by the government? At the Federal level, there are tax incentives in the form of accelerated depreciation and tax credits. The State level benefits come in different forms: a combination of grants, tax credits and renewable energy certificates. Every state has its own program. The challenge is to navigate through the complexities posed by the tax and regulatory environment. It must be noted that without State level tax incentives, Federal incentives are not sufficient to make a project’s return attractive enough from the point of view of investors. As a customer, do I benefit from tax incentives?
No. The benefits to the user of electricity materialize in lower cost of electricity. It is the investor providing the financing that will ultimately take advantage of the tax benefits. The tax benefits combined with cash flows from the sale of electricity to the offtaker will generate the rate of return targeted by the investor. |
Can you also invest in the system YOU host?
Yes, provided that it is eligible for the tax benefits, can provide the capital to purchase and deploy the system. Thus, the offtaker will enjoy a rate of return from its investment over a long period of time.
Why is our electricity rate cheaper than the local utility’s rate? The tax incentives from the Federal and State governments allow us to pass some of the benefits to the offtaker in the form of a lower cost of electricity.
Can the system be ground mounted?
Yes. Many systems are ground mounted. Site owners who have a lot of land or who are sensitive to the roof of their building may elect ground mounted systems. There is usually a price differential for the installation between a roof mounted system and a ground mounted system.
What if the solar system stops working? Will I be in the dark?
No. If for whatever reason the system stops working, the grid takes over automatically. There will be no interruption of power. Users of electricity receive a second bill from us every month. They will pay only for electricity produced that they used.