A power purchase agreement (PPA) is a popular ‘free solar’ proposition that offers credible companies long term financial, accounting and eco benefits. It involves two parties with one business generating the solar energy and the other purchasing business purchasing it. A PPA also satisfies companies that prefer to use external investors to leverage the benefits of solar energy whilst they reinvest their own funds into core business activities.
Utilising our direct relationships with various energy efficiency asset investment partners, if your business satisfies a range of criteria (see below), one of our investors will provide you with a free, fully maintained solar PV system – designed and installed by EvoEnergy – in return for a fixed-term lease or license of your roof and airspace above your premises.
A competitive PPA price (per unit of electricity) will also be offered that is cheaper than your existing energy provider and linked to an inflation rate that is lower than the energy market, saving you tens of thousands of pounds every year for the duration of the PPA and giving your finance team the much-desired ability to forecast electricity costs over the long term.
ANo upfront costs or ongoing service fees apply, meaning that you begin to make savings from day one and continue to benefit for the full term of the PPA, usually for a minimum of 20 years. At the end of the term, it is common practice that the PV system will be gifted to you for a peppercorn fee.
A power purchase agreement (PPA) is a popular ‘free solar’ proposition that offers credible companies long term financial, accounting and eco benefits. It involves two parties with one business generating the solar energy and the other purchasing business purchasing it. A PPA also satisfies companies that prefer to use external investors to leverage the benefits of solar energy whilst they reinvest their own funds into core business activities.
A PPA makes perfect business sense and is set up to mutually benefit both you and the investor;