One of the most common forms of solar financing for commercial solar systems is through a Solar Power Purchase Agreements or PPA financing. PPA is unlike outright ownership, as organizations (businesses, municipalities, educational institutions) play host to a solar array owned and operated by someone else and purchase the electricity from the array under a long-term agreement. At Marg Energy Private Limited, we are intimately familiar with commercial solar PPA financing.
During our long history in the solar industry, we’ve worked with every type of solar financing available. As a result, we can work within whatever financial structure you bring us.
Marg Energy Private Limited offers a variety of PPA models that can be customized to the needs of our customer. With our traditional PPA model, Marg Energy Private Limited (sometimes in partnership with financiers) owns your solar energy system and sells the energy produced to you in a long-term agreement with monthly payments that are less than your current electricity bill. We have unique and innovative PPA products that work especially well for non-profits, religious institutions and municipal entities.
A key factor for businesses, non-profits, schools, religious institutions, municipalities, and governments to consider is that a solar energy PPA typically does not affect an off-takers balance sheet or borrowing capacity in the same manner as a solar lease or loan. This means that a solar PPA is often the easiest and quickest way to move toward sustainability commitments or energy cost-saving measures due to the lack of legal or financial obstacles.
Costs associated with adding a solar system and the avoidance of financing
Required since the system is not owned, plus lower risks on system performance.
Get instant cost savings compared to your utility, including savings over the expected life of the solar system.
Lock in low-energy costs and get a hedge against inflation and fluctuating market costs.
Use clean, renewable energy instead of energy generated with fossil fuels.
Solar Renewable Energy Credits or SRECs are based on a specific amount of renewable electricity that has been generated by solar energy. SRECs are typically purchased and sold by consumers (usually regulated utilities) to meet the obligations associated with Renewable Portfolio Standards (RPS) that mandate a certain level of renewable sources in the overall energy mix. SRECs can be purchased by organizations or consumers who voluntarily purchase them for sustainability purposes. The developer most commonly owns SRECs in solar PPAs. When a customer makes a solar PPA, it is essential to clearly understand who owns and sells SRECs generated from the PV system.
Today’s energy market is plagued by fluctuating costs, making it difficult to budget energy expenses in the long run. With a commercial solar PPA, your organization can secure a fixed electricity rate, so you can get budget certainty and more accurately forecast energy expenses over the term of your PPA (e.g., 25 years). Solar PPA electricity rates are fixed and agreed upon upfront, so customers receive a hedge against inflation and reduce the financial risk of traditional energy source increases or energy market volatility. Commercial solar PPAs can be structured so businesses and organizations start receiving savings over their current electricity rates from the start of the PPA agreement.
Transform your organization or business rooftops, parking lots, and land while lowering operating costs. Solar PPAs can include rooftop solar, ground mount solar, or even solar canopy for parked employee cars. Plus, solar PPAs can be structured to include battery storage and reduce business risks associated with power failures. Solar PPAs are one of several ways businesses and public entities can pay for solar. Marg Energy Private Limited offers several PPA structures to fit unique needs for decades to come.
We can manage the entire project life cycle and help your business plan for future coordination in sustainability.
