It might seem strange that so many commercial businesses are dragging their feet at the idea of going solar to increase their energy savings. But the truth of the matter is that there are a lot of concerns with regard do the sheer cost of commercial solar financing due to the upfront costs, maintenance and servicing throughout the life of the equipment. However, once businesses take the time to look into options with regard to getting a commercial PPA in Massachusetts, it becomes clear that it is not as complex or risky as it might have seemed.
PPA is the abbreviation for a contract known as a Power Purchase Agreement. With this special contract and the services of a professional developer, it is possible for utility cost savings in New Bedford, MA and all throughout the entire state to be achieved without any initial investment on the part of the commercial business. Other options require at least some investment by the business, either purchasing the equipment outright with cash, getting a loan through a bank or leasing the equipment through an installation company.
Don’t Let Finances Hold You Back
If your business has the money to pay for a commercial solar energy system, chances are you won’t need a PPA. However, even businesses that have the capital to install solar energy will often go with a commercial PPA in Massachusetts because of the many other advantages associated with a Power Purchase Agreement. This is the most popular type of commercial solar financing used in the market today and for many business owners, the terms of these agreements are what sealed the deal.
Some of the best advantages of a Power Purchase Agreement include:
- no upfront cost for purchase and installation
- no continued costs for maintenance and servicing
- low cost electric bills throughout the term of the contract
- guaranteed rates, either fixed or at fixed increments
- the ability to instantly start saving money as soon as the system is operational
- access to clean “green” energy for your business and the ability to claim a reduced carbon footprint
All of these benefits are immediate and require absolutely no investment on your behalf. Solar Power Purchase Agreement contacts make it possible to achieve utility cost savings in New Bedford and all throughout Massachusetts right away, as soon as the solar energy system is fully operational.
Solar PPA vs. Solar Operating Lease
Another option that is similar in some ways to the commercial solar financing through a Power Purchase Agreement is the Solar Operating Lease. While they may seem to be almost exactly the same concept at first blush, the truth is that they are quite different. Some things are the same, such as getting the solar energy system installed at little to no cost to you. However, there are other things, such as the way that you are billed by the developer through the PPA contract.
The length and terms of the service and the agreement will also differ between a Power Purchase Agreement and a Solar Operating Lease. Lease terms typically range between 7-10 years, while PPAs are usually between 20-25 years. A commercial PPA in Massachusetts will also include performance guarantees and operations-maintenance contracts that are included in the price.
With a Solar Operating Lease, you will pay monthly utility payments that are typically less than your current utility bill. The greatest difference between a solar PPA and a Solar Operating Lease, is the way that the two types of accounts are billed. With a lease you would pay a flat monthly lease habit, but with a PPA, your business is only required to pay for the amount of power that is generated by your solar panels for the month. With a commercial PPA in Massachusetts, the solar rate is almost always lower than the regular utility bill.
Where to Get Utility Cost Savings in New Bedford
If you are interested in learning more about getting a commercial PPA in Massachusetts, look no further than Alternate Power & Energy (AP&E). A Power Purchase Agreement can help your commercial business or municipality realize considerable utility cost savings in New Bedford, MA and all throughout the state. Located in Fall River, AP&E can help you take advantage of commercial solar financing options, lock in lower energy utility rates, take care of all the details regarding installation, maintenance and servicing throughout the term of the contract. Give us a call today at 508-525-3013 to learn more about what AP&E can do for you!