SOLAR PROJECT FINANCING WITH A PRE-PAID POWER PURCHASE AGREEMENT
A Pre -Paid Power Purchase Agreement (PPPA) may be the ideal financing structure for companies that have extra cash on hand but don’t have an appetite for the Federal ITC or MACRS (tax credits or accelerated depreciation) or for Non-Profit organizations. Making a pre-payment on the PPA lowers the overall cost of the PPA and the saving are passed on to the electric offtaker. The tax benefits of the PPPA are utilized by the investor and that value is passed back to the electric off-taker in the form predictable electric prices over a long term. Unlike a Capital Lease with a fixed purchase price at the end of the lease term, a PPPA may offer multiple out options throughout the term of the agreement.
PRE-PAID POWER PURCHASE AGREEMENT FEATURES:
~ You only pay for the power that you use from the system
~ There are usually no other costs with the PPPA to operate the system
~ Option to prepay the electric production payment to lower PPPA kWh costs
~ Options to purchase the system after year six of the PPPA
~ Monitoring, upkeep and cleaning are included in the PPPA
TERMS & CONDITIONS:
~ Company Credit: A+ to B- Credit types and Financially Strong Companies.
~ Company Types: For Profit and Not for Profit Entities
~ Ownership Type: Owner occupied or Tenant occupied financing available
~ Project Type: Commercial and Industrial Solar Projects using Tier 1 Equipment
~ 20 or 25-year term depending on the financial metrics of the project
~ Extend term, terminate agreement or purchase equipment at the end of the term.
~ Contact us for Minimum Funding Amounts
~ Can be roof mount, ground mount or carport install or combination of the three