International Solar Consulting Offers Power Purchase Agreements for Large Scale Photovoltaic Projects

Power Purchase Agreement

A Power Purchase Agreement (PPA) provides reliable, long-term solar electricity generated on the host’s site. The host only pays for the metered electricity delivered at substantially less, over time, than their local utility company would charge.

The PPA Concept:

• No upfront capital required from the host-site.
• Investors own the PV system and sell electricity back to the host-site.
• Investors pay for the equipment, installation, operations and maintenance.
• Investors keep the utility rebate, federal energy tax credit and depreciation.
• Investors own the Renewable Energy Credits (RECs).
• The term of the PPA is usually for 10, 15, or 20 years with an option for the host site to acquire the PV system at a reduced price anytime after the sixth year, or 10th year.

The PPA Process:

International Solar Consulting will assist you in qualifying for a Power Purchase Agreement for a PV project greater than 300 KW to 2 megawatt range.

International Solar Consulting will design and manage the project and bring PPA investor representatives to you. We have assembled a team of qualified strategic partners to handle all phases of the turnkey service. It is important to place your project in the utility queue (waiting list) before the current incentive is reduced and the reservations are filled.

The PPA Steps:

1. The host-site authorizes International Solar Consulting to perform a free feasibility study.
2. The host-site provides 12 months of electricity bills and a roof-load analysis.
3. Investors evaluate the credit worthiness of the host-site.
4. Investors qualify the project by determining if the PPA economics are sufficient.
5. International Solar Consulting designs the system and manages the project.
6. International Solar Consulting secures the rebate and the net metering interconnection.
7. The host-site reviews and approves each step in the process.
8. The PV project is installed and commissioned.
9. The host-site begins paying for the metered power delivered by the system.

Investors operate, maintain, insure and monitor the system at their expense.

Net Metering

Net metering rules allow facilities with PV power to offset their consumption by turning the utility meter backwards when the system is generating electricity in excess of the current demand. This means the value of the energy can be “banked” up to one year and used at a different time than it is produced. Net metering offers the flexibility of obtaining credit for all the electricity generated at your site on an annual basis regardless of when you actually use the power

Renewable Energy Credits

Renewable Energy Credits (RECs) are also known as Green Tags or tradable renewable certificates. There is an emerging market for RECs created by a monetary value assigned to the green attributes of renewable energy. RECs can be bought, sold or traded. One REC is equivalent to one MWh from a renewable generation source. PPA investors own the RECs produced at a host-site. However, investors can assign renewable energy credits back to sites so companies can be designated as GREEN.