A Power Purchase Agreement is a proven 3rd party ownership model. Sunforce will take allownership responsibilities and the customer will enter into a contractual agreement to purchase each delivered kWh for 15 or more years at a predetermined rate.
Benefits of a Power Purchase Agreement (PPA)
- No upfront costs
- No financial strain on balance sheet
- No ownership responsibilities e.g. no operation and maintenance
- Predictable long term energy rates
- Energy at current or lower cost of electricity
- Full insurance coverage
- Potential increase in the commercial real estate value that is utilizing the power
- Meeting government mandates to utilize alternative energy and to reducedependency on foreign fossil fuels for energy
Basic structure of a Power Purchase Agreement (PPA)
