Power Purchase Agreements (PPA)

At Prudent Solar Group we effect  PPAs as part of a turnkey installation for suited clients and investors.

What Is a Solar Power Purchase Agreement (SPPA)?

A Solar Power Purchase Agreement (SPPA) is a financial arrangement in which a third-party developer owns, operates, and maintains the photovoltaic (PV) system, and a host customer agrees to site the system on its roof or elsewhere on its property and purchases the system’s electric output from the solar services provider for a predetermined period. This financial arrangement allows the host customer to receive stable, and sometimes lower cost electricity, while the solar services provider or another party acquires valuable financial benefits such as tax credits and income generated from the sale of electricity to the host customer.

With this business model, the host customer buys the services produced by the PV system rather than the PV system itself. This framework is referred to as the “solar services” model, and the developers who offer SPPAs are known as solar services providers. SPPA arrangements enable the host customer to avoid many of the traditional barriers to adoption for organizations looking to install solar systems: high up-front capital costs; system performance risk; and complex design and permitting processes. In addition, SPPA arrangements can be cash flow positive for the host customer from the day the system is commissioned.

A Power Purchase Agreement (PPA) is an alternate method of "buying" PV--without an upfront investment.
Solar photovoltaic (PV) energy has become extremely popular over the past few years. The benefits of solar energy are great. Solar energy is completely clean and renewable, it goes hand in hand with organic and sustainable farming and it is an important part of California's greenhouse gas (GHG) reduction plans1. Solar PV systems have a long life expectancy. The installation of a PV system will offset utility energy purchases for 25 to 30 years and will make the winery less susceptible to utility price volatility in the future. With oil at more than $100 per barrel, the cost of energy is likely to be volatile.

A Power Purchase Agreement (PPA) is an alternate method of "buying" PV--without an upfront investment.

Solar photovoltaic (PV) energy has become extremely popular over the past few years. The benefits of solar energy are great. Solar energy is completely clean and renewable, it goes hand in hand with organic and sustainable farming and it is an important part of California's greenhouse gas (GHG) reduction plans1. Solar PV systems have a long life expectancy. The installation of a PV system will offset utility energy purchases for 25 to 30 years and will make the winery less susceptible to utility price volatility in the future. With oil at more than $100 per barrel, the cost of energy is likely to be volatile.

Benefits of an Solar Power Purchase Agreement (SPPA)

  • Demands no upfront expense in order to buy solar power
  • Provides predetermined electricity rates for term of contract, typically about 15 to 20 years
  • Offers production monitoring and metering by experts
  • System owners take responsibility for operation and maintenance of equipment
  • Supports renewable energy industry and local jobs (for installation and maintenance)
  • Offers possible path to meet your green policy objectives
  • Places emphasis on ensuring maximum productivity of solar system
  • Option to purchase the system at fair market value after set time period