The client, often a commercial enterprise or government organisation, agrees to purchase the energy produced by the renewable energy system for a set period, typically around 20 to 25 years. With a solar PPA agreement, the business only pays for the power produced by the energy system. At the same time, the developer is responsible for the system’s design, construction, operation, and maintenance.
Depending on the scenario, a commercial entity may also have the option to purchase the energy system from the developer at the end of the fixed term – paving the way for growing businesses to garner self-sustainability a little more efficiently.
There are several ways in which a solar PPA agreement works for businesses and bottom lines. At 13KUGA, we have maintained a strong relationship with each of our commercial clients who choose us to cover their solar PPA agreements. If you’re on the fence about the prospect, read on as we delve into the various ways that one of these arrangements can benefit your business.
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1) Cost Savings
The first and most obvious way a solar PPA agreement works for a business is in cost savings. With power prices surging and fluctuating in a somewhat uncontrollable manner, business owners and residents around the globe are aching for any form of consistency with bills and costs.
The crowning virtue of a solar PPA agreement is in the fixed rate and term for the power bill, and they allow commercial entities to expand with a little more breathing room in the future.
2) Reduced Associated Financial Risks
Another advantage of commercial solar PPA agreements is the reduced risk, as the developer assumes responsibility for the performance of the energy system, meaning clients are not liable for any unexpected maintenance or repair costs over the contractual term.
Businesses that don’t have to reconcile the costs of repairing and maintaining these intricate systems while still having access to clean and reliable energy will see great financial improvements over the foreseeable.
3) Less Worry & Stress For Businessowners
Solar PPA agreements also offer simplicity, as the business does not have to worry about the design, construction, or maintenance of the resulting energy system – the developer handles all of these aspects and eases the stresses and burdens that can come from owning and running a business and energy installation simultaneously.
Smaller companies that have opted for solar PPA agreements have seen a marked reduction in issues, particularly if they have the services of a reliable and trusted supplier at their disposal.
4) The Company Becomes Part of The Solution
While not directly tied to the contract itself, the fundamental element of solar PPA agreements is in the establishment of renewable energy production for a business. Any company that implements a sound and reliable renewable energy system is invariably becoming a part of the climate solution that continues to cause chaos around the world.
13 KUGA
We’ve helped countless commercial enterprises enter the renewable energy market and allowed them to flourish with pioneering technology and reliable systems. We are happy to sit down and discuss what we can offer you and your business with our solar PPA agreements plus, you’ll have access to innovative solutions that are backed by years of experience.
If you have any questions or queries – don’t hesitate to get in touch with us, and we’ll be happy to answer them!
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