For Any Business having MW Scale Power Plant, the first and most important question is;
Why should a Company Invest in Solar Power Generation?
&
Who will Buy The Power?
In Power plant development business, investments that pay off well in long term, and rely on long term agreements rather than dynamic short term sale transactions. A Power Purchase Agreement, is a contract for purchasing renewable energy, is a straight forward and effective way that an organization can procure renewable energy.
When working with a PPA Structure Model, there are involvements of transmission company, utility company and developer company. Developer company install, operate and maintain power plant, transmission company allow us the use of transmission line network and the transmission related hurdles while utility company handles transfer of energy account from the renewable energy project to the buyer.
Top reasons that customers buying Renewable Power:
- Small Refundable Initial capital investment, Refundable after completion of PPA Term
- No installation costs
- No operating costs
- Lower energy rates
- Predictable energy rates
- Positive environmental impact
- Positive community impact
Types of Power Buyers
COMMERCIAL CUSTOMERS
Successful businesses know how to watch the bottom line and optimize profitability. Controlling costs and reducing energy expenses are top priorities in commercial operations, and both can be achieved as an immediate benefit of moving towards solar energy.
When New Energy Equity runs our initial energy use assessment, the results are obvious: We present you with a solar business plan that delivers lower electricity bills and predictable energy costs for the next 25 years.
Whether you manage a HOTEL, HOSPITAL, RETAIL ENTERPRISE, TECHNOLOGY CENTER OR any other commercial operation, with us, you will realize your renewable energy savings.
EUCATIONAL INSTITUTES
Educational institutions, by definition, are devoted to preparing the next generation for the future, and adopting green energy fits that mission.
In addition, administrators are well aware that the cost of electricity is a significant part of the annual budget. A solar project not only reduces the organization’s electricity spend, but provides 20-25 years of budgeting predictability without spending anything on institution infrastructure.
Educational institutions have found a significant benefit within alumni relations, community image, and student applicant rates when solar projects are hosted on their campuses.
GOVERNMENT AND MUNICIPAL CUSTOMERS
Central, State and local governments need to control costs.
The public demands that governments manage annual budgets and get more done with less. Solar energy projects deliver immediate benefits to the bottom line of any public sector budget through lower energy rates and budget predictability during 20-25 years of energy production, all without the use of public funds for any capital or installation costs In addition, communities and constituents are sensitive to environmental issues that result from traditional energy sources such as coal and fossil fuels. Proactive governments that turn toward renewable energy sources are rewarded with community good will.
A solar energy project delivered by Mahs Solar Park provides positive results in a low risk, dependable, and successful end-to-end offering.
UTILITIES / INDUSTRIAL CUSTOMERS
Utilities / Industries have a choice of where to source energy. Electricity can come from a variety of sources and solar is quickly becoming one of the best options due to peak load production and reliability.
Entering into a 20-25 year Power Purchase Agreement enables utility partners to lock in a predictable electricity rate and allows the utility to fulfill certain renewable energy obligations,
We are very much interested to work with your organization to develop a solar business plan based on your regional utility energy needs.
How Does a PPA Work
- A buyer agrees to purchase a project’s renewable energy at a PPA Price agreed in the contract.
- Developer install and generate renewable energy.
- All approval and operation & Maintenance will be done by project developer.
- Buyer will pay the cost as agreed in the PPA contract.
- Buyer generally receives the project’s Renewable Energy Certificates (RECs).
- The buyer continues their retail relationship with the utility, unchanged.
The Benefits of a PPA
- Simplifies process for buyers.
- Easily scalable, allowing buyers to meet a large portion of sustainability goals with fewer deals.
- The procurement of bundled RECs is, arguably, the best way for a corporation to meet renewable energy obligation.
- PPA makes it possible to generate a positive cash flow right from the outset.
- Power Purchase Agreement is a way to safeguard oneself against the increase of conventional energy costs.
- For corporate buyers, a PPA reduces carbon footprint and, at the same time, offers marketing and financial opportunities.
Our team of experts are working smartly and identify Genuine Power Buyer, on whom a Developer/Investor can trust for tenure of PPA.