Many commercial businesses and municipalities are taking advantage of the benefits associated with signing a solar power purchase agreement or PPA. In the most basic of terms, a PPA is a financial agreement between an organization and a developer, which allows for the design, installation, maintenance and operation of a solar energy system. The system is installed on the organization’s property, which is leased to the developer, gaining the opportunity to purchase the power that is generated by the solar energy system at a pre-determined or fixed rate that is lower than the local utility rate.
One of the primary advantages associated with signing a municipal PPA in Massachusetts or anywhere in the United States is the guaranteed lower electricity price. For the developer, there are certain advantages as well, such as the income received from the municipality or commercial business when they purchase the solar electricity from the grid. Alternate Power and Energy in Fall River, MA is a company that facilitates solar power purchase agreement opportunities to area organizations. In many situations, this type of municipal solar financing is a win-win for everyone involved because each party comes away with a financial benefit.
What You Need to Know
The typical contact range fo a solar power purchase agreement or PPA is between 10 and 25 years. During the term of the contract, the developer remains responsible for the maintenance and operation of the system. This is true of the arrangement made by Alternate Power and Energy in Fall River. Commercial business and municipal solar financing includes complete responsibility for the maintenance and service of the solar energy system. At the end of the contract, the organization has the option to extend the PPA, have the system removed by the developer or outright purchase the solar energy system from the developer.
Another huge advantage to signing a municipal PPA in Massachusetts is the fact that there are no out-of-pocket expenses for the organization that signs the solar power purchase agreement. Per the contract, the developer takes care of all the upfront costs associated with designing, sizing, financing and installing the solar energy system and is responsible for all of the maintenance and servicing throughout the term of the contract. So without any financial investment on the part of the organization, the municipality or business is able to start saving money with solar energy as soon as the system is operational.
Predictable Energy Costs and Savings
In addition to immediate cost savings through Alternate Power and Energy in Fall River, MA for a solar power purchase agreement, there is also the assurance that comes from knowing that your municipal solar financing agreement has guaranteed your future energy rates. Depending on the developer, municipalities and businesses can be put under either a fixed plan that maintains a constant rate or a fixed escalator plan that adjusts at a slower rate than the actual rate increases. The rate given to organizations through a municipal PPA in Massachusetts is often much lower than the current rates and projected energy cost increases throughout the term of the contract.
Other Advantages to PPAs
Beyond the energy and utility cost savings, there are also other advantages associated with signing a solar power purchase agreement with Alternate Power and Energy in Fall River. PPAs help companies or municipalities to become “green” and reduce their carbon footprint without having to come up with the upfront capital to pay for the purchase and installation of a solar energy system. Municipal solar financing helps organizations that would otherwise not be able to afford making the leap to more energy efficient utility resources be able to do so through a solar power purchase agreement.
Make sure to choose a developer that has a experience working with solar and other types of alternative energy solutions, as well as experience in municipal solar financing. The knowledge and experience behind the team that operates Alternate Power and Energy in Fall River, MA is very instrumental in the success of this organization and the solar power purchase agreement contracts that they put forth. Working with an organization that you can count on and trust to deliver quality services is instrumental in the success of your company’s or municipality’s move into solar energy savings.
Call AP&E for Municipal PPA in Massachusetts
If you are interested in learning more about singing a solar power purchase agreement in the State of Massachusetts, contact Alternate Power and Energy in Fall River. We can answer any questions that you might have about commercial or municipal solar financing and can give you the information you need to decide whether or not a municipal PPA is right for you and your organization. Give us a call at 508-525-3013 or use our online form to contact our team.