Solar Energy: Reducing What You Pay With A Zero Upfront Cost!
Solar energy is becoming more popular as the years go on. As the technology improves and the installation costs, people are increasingly turning to solar to power their homes and businesses. But what if you could get solar installed with no upfront cost? And what if you could save money from day one? In this blog post, we’ll explore how you can do just that – reduce your energy costs with solar, with no upfront investment required. Below we highlight the importance of Power Purchase agreements (PPA) and Solar leasing when providing solar energy via a commercial solar installation.
Service Benefits
What is a Power Purchase Agreement (PPA)?
A Power Purchase Agreement, or PPA, is a contract between a solar developer and a customer where the customer agrees to purchase power from the developer at a set price over a set period via a commercial solar installation. This type of agreement is often used by businesses and organizations who wish to go solar but do not want to pay the upfront installation and equipment costs. In some cases, individuals can use PPAs to finance their solar projects; this has two benefits – business owners may be able to hedge against volatile fossil fuel prices and diversify their energy supply.
Perhaps the most well-known benefit is that they can help to reduce energy costs. Signing up for PPAs locks your electricity price, protecting you against future price increases and boosting your savings compared to what you’d get from the wholesale market.
Energy prices are constantly rising, and now is the best opportunity to find a PPA. With a PPA, you can provide your business with stability and predictability by locking in a low fixed price for electricity that’s not at the mercy of market prices or energy sources. Plus, it can help you meet your sustainability goals by allowing you to source power from renewable resources that reduce emissions while saving you money.
What is Solar Leasing?
Solar leasing allows you to pay for your solar panel system over time, usually with little or no money. The lease payments are typically lower than your current utility bills, so you save money from day one. Most solar leases include:
– An escalator clause – The price you pay for electricity will increase each year at a rate lower than the inflation rate, ensuring that your savings grow over time.
Solar leases typically last 20 years, and at the end of this set period, you have the option to purchase the system for its fair market value or renew the lease for another time. Solar leasing is a great way to go solar with little or no upfront cost, helping you save money on your electric bills from day one. Solar leasing may be right for you if you’re aim is to reduce your carbon footprint, saving money in the process.
What is the difference between a Power Purchase Agreement (PPA) and Solar Leasing?
Solar leasing is a strategy where you pay a fixed monthly “rent” or fee calculated based on the estimated system production. You are given the right to use the PV system in charge of the fixed monthly payments. Unlike a solar lease, with solar PPA, instead of paying to “rent” the PV system, you agree to purchase the power generated by the system at a set price per unit (kWh). So, in short, one is a means of renting equipment, whilst the other is a mortgage to pay for your commercial solar installation, which is very important for businesses to note.
Why Should I Choose a Commercial Solar Installation?
Solar energy is a renewable resource that can help reduce your electricity costs. Solar panels harness sunlight into electricity, which can be used to power your business or home. Solar panels are becoming increasingly affordable, and many financing options can make a solar installation more accessible.
There are many reasons to choose solar energy, but the most significant benefit is the potential to save money on your electric bill. Solar panels can provide power for your home or business, offsetting the cost of traditional utilities. In some cases, you may even be able to sell excess energy back to the grid. Solar panel systems have a relatively long lifespan and require little maintenance, making them a low-cost investment over time.
Another reason to consider solar is its environmental friendliness. Solar power generation does not produce greenhouse gases or other pollutants. It’s a clean source of energy that can help reduce your carbon footprint. If you’re considering a solar installation, many resources are available to help you make an informed decision. Solar installers can assess your needs and recommend the right system for you. And numerous online tools can help you calculate the cost and savings potential of going solar.