Find out how a power purchase agreement (PPA) for solar energy works and how it can improve your energy consumption.
A power purchase agreement or PPA agreement for solar energy allows you to partner with Verogy to build a solar energy system. As your power purchase agreement provider, we take on all the risks and costs associated with solar systems while you purchase the energy from us at a discounted rate.
If you’re wondering what a solar PPA agreement is, it’s an agreement you enter into with your solar system developer. When you enter into a solar PPA, you and your solar partner build your solar panel system together. Once the system is built, your solar partner owns the system, and you purchase your power from them. So if you enter into a PPA with Verogy, we own the solar system, and you purchase its energy from us monthly at a fixed electricity price.
Solar PPAs offer many benefits, such as the way it keeps your monthly energy costs low. Your solar provider keeps the payments low by using tax credits to cover the solar system’s upfront costs. Also, when you partner with us, we take on all the system’s financial and operation and maintenance (O&M) responsibilities. Your solar power purchase agreement allows you to power your facility with renewable energy while reducing your investment costs and electricity bills.
PPAs and solar leases are similar, but not the same. When you enter into a solar lease, your solar developer rents your rooftop or open space to host the solar panel system on With a PPA, you simply purchase the solar power generated by the system. A solar lease involves the entire system, while a PPA deals with the energy it produces.
Reach out to us today to begin drawing up a power purchase agreement that meets your facility’s solar energy needs.
How do you know whether you should enter into a power purchase agreement or buy your solar panel system outright? It’s best for you to buy your solar system outright if you have cash or a loan available to help you finance your solar investment. A healthy tax appetite also makes purchasing the system a viable option for your organization. If you don’t have access to cash or a loan, and your organization doesn’t have enough of a tax appetite to justify purchasing your system, a PPA is the right option for you.
Remember that no one solar financing option is better than the other. PPAs, solar leases, and solar purchasing are all available because different organizations have different financing needs. When you partner with Verogy, we help you determine which financing option meets your financing needs while letting your organization access solar power.
If you want to use a power purchase agreement to access solar power, Verogy is a great partner to have because we keep our monthly payments stable. Other solar providers and developers let their PPA payments fluctuate with the solar electricity market’s changes, but we keep ours steady and predictable. Our PPAs’ stability allows you to stay within your solar financing budget while keeping your electricity bills low and manageable. We put your financing needs first so you can use the renewable energy you want at an electricity price that works for your organization.
If you believe you’re a good candidate for a power purchase agreement, or you want to know more about your solar financing options, connect with us today. When you partner with us, we can go over all the financing options with you and help you select the right one for your organization. If you want to use a PPA to access solar power, we can set up an agreement that meets your solar energy objectives while staying within your budget. We keep your monthly payments low so your electricity bills stay manageable. Then you can experience cost savings as you transition to a renewable energy source of electricity.