Do you know of a business or tax exempt organization that has been hard hit by Covid-19? We all do. One way to help weather this economic crisis is by going solar. New laws in Virginia have opened the possibility of third party ownership for solar equipment, meaning immediate savings for businesses and organizations who take advantage of this option.
This possibility is already available in MD and DC, but this year the Virginia Clean Economy Act made third party solar ownership legal in the Commonwealth as well. This model is called a Power Purchase Agreement (PPA), and it is a simple way for businesses and tax-exempt organizations to save money and reduce their carbon footprint without the responsibility of equipment ownership and maintenance.
How Does a PPA Work?
In the simplest terms, we agree to install solar at a business or organization’s site at no cost to the building owner, generate power at their site, and sell that power back to the organization at a lower rate than the utility company can. That immediate savings on the utility bill can really add up.
PPAs Help Businesses and Organizations Save Money and Save the Planet
A PPA is also an excellent opportunity to reach sustainability goals and model an organization’s values without the initial investment for equipment ownership. It was for this reason that Our Lady Queen of Peace Catholic church in Arlington, VA, went solar with us in a PPA. They are pleased to have brought their values into plain sight on their rooftop, and as a bonus, they now save over $1000 per month on their electric bill.
Benefits of a PPA:
- No capital costs: We handle the upfront costs of designing, procuring and installing the solar PV system.
- Immediate Savings: Without any upfront investment, you can go solar and begin saving money on your utility bill as soon as the system becomes operational.
- Reduced energy costs: Solar PPAs provide a fixed, predictable cost of electricity for the duration of the agreement.
- Limited risk: We are responsible for the system’s maintenance, performance and operating risk.
- Increase in property value and ease of transfer: Solar PV systems have been shown to increase property values. The long-term nature of these agreements allow PPAs to be transferred with the property and thus provide customers a means to invest in their property at little or no cost.
Grab your lunch and bring your questions to our Wednesday Webinar about solar PPAs. From 12:00pm to 12:45pm, Ipsun’s Commercial Development Manger Tony Stephan and Solar Consultant John Mein will present an overview of how PPAs can save businesses money and explain how a PPA works in detail. A Q-and-A session will follow the slide show. Depending on your tax structure and your specific property, a PPA could be a great solution for your non-profit or business, so join us to learn more!