What Is A Power Purchase Agreement (PPA)
PPA’s are a free commercial solar panel installation We have partnered with an industry leading funder in order to offer Power Purchase Agreement which is a marketing leading offering in the world of commercial solar.
A Power Purchase Agreement allows your business to have a full solar panel roof installation at zero expense to your business. In return you only pay for the energy produced by the solar panels at a discount rate of circa 50%.
Power Purchase Agreements vary from 10-25 years and lock in your energy prices for the duration of the agreement so there is complete energy price stability. The more power you use, the more you can potentially save.
Benefits Of Power Purchase Agreement For Your Business
– Our PPA offering is typically a period of 20 years.
– The price of electricity is fixed at a market discounted rate with no indexation.
– There is no cap or minimum requirement on your usage from the solar system: the more you use, the more you save.
– Refinance or buy back your system at any time at no premium.
– No planning permission required. All licences and permits will be secured by Galaxy Renewables
– Complete structural surveys ensure the roof’s integrity & suitable for a Solar PV installation all conducted by Galaxy Renewables and its affiliates.
– PPA Funded System is fully insured by the funder of the PPA System from storm damage, fire, theft and vandalism.
– Full System Ownership at the end of the PPA Contract
– No Liability for you regarding operation and maintenance of the PPA Solar System
Road To Installation - It’s A Simple & Fast Process
Choosing Free Solar PPA Over
Buying Solar Panels Outright
Power Purchase Agreement
– Free Commercial Solar Panel Installation
– Immediate Financial Savings
– Fully Maintained At No Cost
– Fixed Energy Prices For Up To 25 years
Buying Outright
– Up-front capital required
– Possible financial incentives and tax rebates
– Full control of your solar system
– Ownership and management of your solar system
Top-Tier Trusted Brands We Use For Your Solar Installation
Frequently Asked Questions
A Power Purchase Agreement (PPA) for commercial solar is a contractual arrangement between a solar developer (provider) and a commercial entity (customer) where the developer installs, owns, and operates solar panels on the customer’s property or nearby location. The customer agrees to purchase the electricity generated by the solar panels at a predetermined rate over a specified term, typically ranging from 10 to 25 years.
The customer benefits from lower electricity costs without the upfront investment in solar equipment, while the developer receives revenue from selling the electricity and potentially tax incentives.
Typical terms and conditions in a commercial solar PPA include:
- Contract duration and fixed electricity rates
- Specifications regarding the installation and operation of the solar system
- Responsibilities for maintenance, repairs, and insurance
- Performance guarantees ensuring the solar system meets specified energy production levels
- Payment terms and billing procedures
- Terms for transferring the PPA in case of property ownership changes
- Termination clauses and options for early termination or buyout
Business entities benefit from solar PPAs in several ways:
- Reduced electricity costs with predictable rates over the contract term, providing budget certainty and protection against utility rate increases.
- No upfront capital investment in solar equipment, allowing businesses to allocate resources to core operations.
- Potential to achieve sustainability goals and demonstrate environmental responsibility by utilizing renewable energy.
- Hedge against volatile energy markets and fluctuating fossil fuel prices, enhancing long-term financial stability.
- Potential for tax benefits or incentives associated with renewable energy usage, depending on local regulations.
When evaluating potential PPA providers for solar energy, commercial organizations should consider:
- Provider reputation, experience, and track record in solar development and PPA management.
- Proposed terms, including electricity rates, contract duration, performance guarantees, and termination options.
- Financial stability and ability to secure financing for the solar project.
- Technical expertise in solar system design, installation, and maintenance.
- Flexibility to tailor the agreement to the organization’s specific needs and preferences.
- Compliance with local regulations, permitting requirements, and environmental standards.
At the end of a commercial solar PPA term, organizations typically have several options:
- Renew the agreement for a new term, renegotiating terms such as electricity rates and contract duration.
- Purchase the solar system at fair market value or negotiate a buyout price.
- Remove the solar system, potentially upgrading to newer technology or exploring alternative energy solutions.
- Explore options for extending the PPA with the current provider or seeking new providers through a competitive bidding process.
- Terminate the agreement and return to purchasing electricity from the grid, although this may result in higher costs and foregoing the benefits of solar energy.