Somos Solar Commercial & Industrial Energy Company
PPA’s
Stated simply, Power Purchase Agreements (PPA) were created to allow environmentally-minded individuals and businesses to invest in renewable energy while helping other businesses and organizations lower and stabilize their power bills by providing all the funding, planning, and construction of an intelligently-sized photovoltaic system dedicated to producing for those specific entities.
The main consideration in funding a solar project is who the end owner of the system will be. With a cash or financing purchase, the offtaker (entity buying the electric power) would ultimately own the system and dictate how the produced energy was utilized. Another option is a Power Purchase Agreement (PPA) in which a financing partner would pay for the system and ultimately own the produced power. The offtaker would effectively enter into a new utility relationship with the PPA holder and purchase the produced electricity at a heavily discounted rate.
A PPA would mean the developer, the entity financing the photovoltaic array, would purchase the entire solar system for the offtaker, and sell the generated power to the facility at a discounted rate compared to the utility provider. The developer would be incentivized to ensure optimal systems performance and would closely monitor the system to guarantee production. the developer would also enter into a long term land lease for where the solar array would be installed. The lease could pay as much as one thousand dollars per acre, per year. the developer would ultimately own the system, and therefore be responsible for maintenance and monitoring.
Somos is excited to now offer PPA's for our clients. Not only will we design, engineer and construct the energy facility, we will own and operate for the lifetime of the facility, ensuring renewable energy production and delivery under the PPA contract.