It’s not a lease, and it’s not a fleece. That’s right, there’s a legitimate way to install and enjoy the benefits of solar PV without paying for or owning a PV system: a model called a Power Purchase Agreement (PPA) in which the panels sit on your roof but are owned by a third party, supplying you with clean energy and none of the responsibilities of ownership.
Businesses are increasingly seeing the benefits of “going solar” but not everyone wants to rush in and buy off the shelf. Concerns about raising capital or managing risk might be barriers, but an alternative arrangement known as a Power Purchase Agreement is a model deployed successfully throughout the world that might work for you.
In a PPA, a third party provides a renewable energy system at the site of a client, who wouldn’t own it themselves but simply enter into an agreement to purchase the electricity that their business uses from it. The company who built the system – or a third party – would then operate and maintain the system, acting as a mini retailer by selling the solar electricity to the business owner at an agreed rate, designed to be lower than the grid electricity price.
PPAs have attracted client companies such as Walmart and operators such as Solar City in the US (you know, the one pioneered by Elon Musk). Uptake in Australia is a bit slower, but we’re getting there.
Enigin’s PPA is flexible, allowing our clients to purchase the system outright at any time at the depreciated system value. By Enigin owning and operating the PV system, risks and costs of ownership to the client are removed while providing benefits of lower electricity costs.
Each deal is tailored to your business needs, but one thing is always the same: you lower your costs and get clean renewable energy. Plus, our PPAs live harmoniously alongside your existing grid electricity supply contracts with Synergy and the other retailers.
Alternatively, Enigin may lease the roof space from landlords – effectively making the sun an additional tenant! That can be a massive boon for property developers and owners.
As a cost-competitive clean energy option, why not consider a PPA for your business?