In Standard Solar’s long history in the solar industry, we’ve worked with every type of financing available. As a result, we can work within whatever financial structure you bring us. But one of the most common forms of commercial financing—one we are intimately familiar with at Standard Solar—is the power-purchase agreement, or PPA.

Unlike outright ownership, organizations (businesses, municipalities, educational institutions) play host to a solar array owned and operated by someone else and purchase the electricity from the array under a long-term agreement (typically in the 20-25 year range).

The beauty of a PPA, at least from the standpoint of the business, is really fourfold:

1) It provides the business with an opportunity to monetize often unused or underused space like rooftops and parking lots that would otherwise go unexploited.

2) There are no upfront capital costs, given that a third-party (often an independent power producer, or IPP) builds, owns and operates the array. The only obligation of the business in question is to purchase the electricity the array produces.

3) All monitoring, maintenance and operation fall to the third-party, saving businesses the time and effort of having to train their own employees to handle the intricacies of solar arrays.

4) It also fixes the monthly electricity costs for the business for 20 to 25 years, offering a stability to the company’s bottom-line that may be unmatched in any other aspect of the business.

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At the end of the PPA, the business can either extend the agreement with the IPP, purchase the array at a reduced price or have it removed all together.

There are few downsides to a PPA for most organizations, which is why it is one of the most popular commercial financing options in the market today.

If you’re looking for financing from a partner you can trust, contact Standard Solar today to arrange for a consultation.

Under a PPA, Standard Solar delivers the project on time and on budget, but a third party maintains ownership of system. Then your organization or entity purchases the power. Simple. Easy. And it allows you to reap the rewards of using a solar array without the incumbent risks.

If you’re looking for financing from a partner you can trust, contact Standard Solar today to arrange for a consultation.

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