Using smart finance and the right solutions …. our goal is to deliver to our clients cleaner, cheaper and reliable power
A Solar Power Purchase Agreement (PPA) enables your business to install solar power and enjoy its numerous benefits, without any upfront capital costs from you.
The way it works is that a PPA provider takes on full ownership of the solar system, including its installation and maintenance. Then, when it’s commissioned and is up and running, you purchase the electricity from the PPA Provider. This is usually cheaper than the amount you are currently paying to buy electricity from the grid.
PPAs are a great solution for organisations that want their electricity expenses ‘clearly’ off-balance sheet. The PPA product suits commercial clients that don’t want to be 100 per cent at the behest of the utilities.
Regional commercial customers are paying more for power and don’t have as much choice [in terms of their power supplier] can save significant amounts on their energy bill from day one for example by signing up for solar power at a cost of 13-15 c/kWh for power rather than the 20-30 c/kWh they may currently be paying.
Given the fact that the majority of businesses are operational during the day, they will be using most of the solar power generated. So the level of feed-in tariffs, which in any event have been wound back across most states, are less critical.
PPA contracts typically run for 10-15 years, and Powertex Energy Solutions can steer the project from start to finish.
Powertex Energy Solutions arranges all necessary checks and balances to determine optimum rooftop PV sizes and configurations before drawing up the legal contracts. All of this is managed in-house. Our value is really enabling our partners and end customers to tap in to our unique combination of our solar and financing solutions and gain an immediate understanding as to what is the most suitable solar system with the appropriate finance structure. We not only design and install systems but also carry the license to sell electricity. We have the specialist staff, networks and systems and funding to provide the full solar service.
Pay Less for Your Electricity
You will also benefit from lower electricity tariffs from your retail energy contract for the extra electricity you need to purchase from the grid.
After discussing the best option for you with your Provider, you can choose from various price options. These include a fixed price contract for your electricity, a lower starting price and an agreed escalation rate, or CPI linked increases.
In addition to cheaper, cleaner electricity, you are likely to benefit from better GreenStar and NABERS ratings – and you can reassure your staff and customers that you are reducing your carbon footprint.
How We Install Solar Power Under a PPA
Before we install your solar power system, we will need to perform an assessment of your premises and your electrical infrastructure, and your business’s electricity consumption profile. Then, we advise you on the best solar power system for you and fully explain your pricing options.
You agree to buy the electricity from your Powertex Energy Solutions and sign a contract for a certain term. Once the system is installed and producing electricity, you will be sent a monthly account showing how much electricity is produced. You don’t need to do a thing – we maintain and monitor your system for the entire life of the agreement.
If you are interested in finding out more about whether a Solar Power Purchase Agreement is right for your business, call us on 1300 614 667. Alternatively, request a callback from one of our experienced technicians, or send us an email.
Primary benefits of PPAs:
- Provide a known or fixed electricity rate for a long term – risk minimisation
- Reduce the risk of substantial variation in overhead through energy costs
- Transfer all risk of ownership, maintenance, monitoring and insurance to a third party
- Place emphasis on ensuring maximum productivity of the solar system
- Tangible and visible example of social responsibility which makes sense financially
- Present strong environmental practices and meeting personal carbon emission targets
- Require no cash investment, and
- Provide a tax deductible operational expense
Depending on the site characteristics, PPAs may also assist in secondary benefits and savings including: reducing peak demand costs; improving power factor; and improving phase balancing.