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Talk To A Solar Expert
Solar Energy

5339 Prospect Rd., #334
San Jose, CA 95129
Toll-Free: 1.877.414.0077
Tel: 408.894.9999
Fax: 408.894.9295

Power Purchase Agreements

Power Purchase Agreements (PPA's) are financial vehicles to enable customers needing solar systems typically in the 250kW-1MW range to gain the benefits of a renewable energy source and stable energy costs with minimal capital outlay. K2 Solar can assist customers in onbtaining proposals from and contracting with a PPA provider. The key features and benefits of a PPA are:

  • The 3rd-party PPA Provider pays for the installation and maintenance of the solar PV system and charges the Customer a fixed* rate for 10-20 years for the electricity generated by the system. The 3rd Party Company owns the solar PV energy system, and all installation and maintenance of the system is provided by K2 Solar. As the system owner, the 3rd Party Company would gain the benefits of the rebates, tax credits, and any renewable energy credits resulting from the installation. (* PPA's typically include a small annual escalator at or below current forecast electricity price growth rates)
  • Minimal Up-front Capital is required from the Customer. Customers gain known and stable, long term energy costs where historical energy rates have on average increased by >4% annually over the past 20 years. The Customer's savings is the cumulative difference between the contract power rate and the increasing market rate, times the system production level over the length of the contract. This can easily equate to $100,000's over the life of the solar system. At the end of the contract, the Customer has the option to renew/cancel the agreement or to buy the solar system at a significant discount.
  • The Customer still gains the Marketing Benefits of using green energy. The reduced carbon footprint with the use of renewable energy can be marketed to your customers and employees. This may be shown with real-time displays showing the amount of green energy being produced and CO2 reduced.
 
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