01 / Resource
A physical power purchase agreement (PPA) is often viewed as an attractive option for businesses or non-profit organizations that cannot take advantage of federal tax credits to purchase renewable energy systems on their own. Essentially, a PPA is a long-term agreement between a facility owner and a renewable energy developer. Through the PPA, the facility owner agrees to purchase a given volume of electricity from the developer at a pre-determined price for a fixed contract (typically 10 to 20 years). In return, the renewable energy developer assumes the risks associated with owning and operating the system for the length of the PPA. The PPA’s price terms are very important to project development, as the PPA allows investors to estimate the total revenue available over the life of the project. The project itself may be located on-site at the user’s location or off-site with the electricity being grid-delivered. Additionally, PPAs assign development milestones for the project. Such milestones — like acquisition of permits, execution of a contract, commencement of construction, and commercial operation — track the project’s development progress through construction. This article from the EPA describes physical PPAs in more detail.
Read resource ↗: Commercial solar financing and ownership02 / Resource
Like any business decision, it’s important to weigh the costs and benefits. Overall, with solar, it is important to understand that the return on your investment goes beyond simple math. The benefits are multi-layered over many years. The performance of the solar technology you choose will have a tremendous impact on your long-term savings potential. You may not see a significant ROI until 5-10 years into the project’s life, so determine how your short-term costs add up. Is electricity a significant contributor to your operating costs? Are you located in a region with high power costs? The average price of commercial electricity in the United States is 10.28 cents per kWh, according to the U.S. Energy Information Administration (as of January 2020). Likewise, there may be federal and state tax incentives available for your organization to make installing commercial solar panels more feasible in the long-term.
Read resource ↗: Commercial Solar Panels Tips03 / Resource
Electricity prices generally reflect the cost to operate the electricity grid, as well as the demand on the grid. Many factors play into electricity rates including:
Read resource ↗: Electricity Rates04 / Resource
Over the past ten years, the cost of solar PV system installation has declined nearly 80% as the solar market technology has matured and competition has increased. Also, during this time, the system components have also become more efficient and reliable for array operations.
Read resource ↗: Market Technology Trends05 / Resource
Considering sourcing your building’s power from the sun? An important concept to understand is net metering and whether it’s available in your state.
Read resource ↗: Net Metering06 / Resource
There are many types of solar mounts, but the three primary options for commercial solar arrays include rooftop, ground mount, and parking canopy locations.
Read resource ↗: Types of Solar Mounts07 / Resource
Solar Photovoltaic (PV) technology, otherwise known as solar energy technologies, basically converts light into electricity. A single PV device is known as a solar cell and is usually small in size. Single solar cells produce only a few watts of energy. Connecting several solar cells together forms a larger unit called a solar panel or a solar module.
Read resource ↗: What is Solar PV?08 / Resource
Given you may be one of these leaders, there’s a growing secret across the U.S. and around the world. Solar power is slowly but surely becoming the way of the future – and businesses are primed to reap the benefits. If you sense shifting to clean energy is an intimidating undertaking, the following points should empower you more than anything.
Read resource ↗: Why Solar for Your Business