Solar power purchase tender years,solar system for emergency power,solar power ventilation system work - New On 2016

06.10.2015
SCF’s Power Purchase Agreement (PPA) allows energy consumers to avoid the expensive capital costs of solar panels, inverters, permits and construction. SCF utilizes the Solar Access to Public Capital (SAPC) Commercial PPA for all of its projects, which is an industry standard PPA. Contact SCF today to find out if a PPA is the right service agreement for your solar project. No maintenance required; since the system is NOT owned by the energy consumer, routine maintenance and monitoring will be provided and repairs if needed. Affordable energy; with utility rates increasing annually, entering into a PPA will create cost savings over the expected life of the solar system. A Power Purchase agreement is a financial arrangement in which a third-party developer owns, operates, and maintains the photovoltaic (PV) system, and a host customer agrees to site the system, i.e. A Power Purchase Agreement is different than a Solar Lease, where the host will pay a fixed amount each month for the solar panels, regardless of how much energy the solar panels produce.
Associated Renewable is one of the leading companies involved in facilitating Solar Power Purchase Agreements (SPPA). At Empire Renewable Energy, we offer various financing options for businesses, nonprofit organizations and homeowners that can help offset the costs of a solar installation.
No matter how you choose to finance your purchase, Empire Renewable energy can help you acquire favorable lease terms and negotiate a comfortable agreement that allows you to maximize your return on investment. Traditional financing such as home equity loans and lines of credit can be used to finance the purchase of a solar installation. Many businesses choose to lease large assets because of their tax benefits and for the flexibility to adjust to technological advances and evolving company needs.
While the terms of each agreement may vary, under a solar lease a building or home owner will typically take more of the risk in exchange for potentially more revenue from the utility if and when their system produces more power than it uses. Capital leases are recognized as both an asset and a liability on corporate balance sheets.
Operational leases are strict equipment rentals with no buyout option at the end of the term.


Under a power purchase agreement (PPA), a developer organizes the design, permitting, financing and installation of a solar energy system on your property at minimal or no cost at all. Under a PPA, the developer assumes responsibility for the financing, operation and maintenance of the solar energy system for the duration of the agreement.
While those engaging in a PPA do not directly benefit from available tax credits, they also don’t assume any of the risk or initial expense of installing their system. Empire’s 65 year commitment to quality products, excellent service and superior workmanship ensures you'll get the right installation for your needs. With a PPA, an energy consumer pays for the electricity generated by the solar array, through a service agreement, for a fixed period of time. This reduces project transaction costs, which permits SCF to offer better service agreement terms to energy consumers. Leases tend to have longer terms and lower monthly payments than traditional financing methods.
Under this scenario, the developer may partner with investors to provide financing for the system.
Companies can claim depreciation on the system and deduct interest on their loan payments each year. In an operational lease agreement, you assume no risk and simply return the materials at the end of the lease period. The developer then sells you the power generated on your property at a fixed rate that is typically lower than your local utility's electricity rate. You will see savings right away, however, they will not be as great as if you financed the system yourself. A fixed rate plan keeps your monthly costs constant for the life of the term, while an escalator plan sets a predetermined rate increase, usually between 2 and 5 percent. Our expertise allows us to size a system that is best for you and with SunPower modules powering it all, you'll enjoy a 40-year lifespan and superior lifetime production, which means first-rate return on investment.
This financial arrangement allows the host customer to receive stable, and lower cost electricity, while the system’s owner acquires valuable financial benefits such as tax credits and income generated from the sale of electricity to the host customer.


Depending on the arrangement, the developer may either package any tax credits for a third party, or (often in the case of businesses) allow the customer to use these tax credits. With a capital lease, both parties agree on a bargain or buyout option at the end of the term, at which time the company will gain 100% ownership of the system. Lease payments can be treated as an operational expense on your income statement and the lease does not affect your balance sheet. When your term is up, you can choose to extend the agreement or purchase the system from your developer.
Even with an escalator plan, the cost of these agreements generally remains less than typical utility rate increase projections. After the initial term has expired, the energy consumer can purchase the system for Fair Market Value, or enter into a new PPA. With the growing interest in renewable energy, this financial model allows property owners to develop and produce solar electricity without having to pay the up-front costs. Contact Associated Renewable to understand how your business can reduce energy costs upfront through SPPAs. Homeowners may qualify to receive the Federal Investment Tax Credit, which offsets the cost of installation by as much as 30%. The lessee can still receive all applicable rebates and tax incentives, and may have the option of buying out their system or refinancing when the lease comes to term. They may also qualify for a Modified Accelerated Cost Recovery System tax deduction, which accelerates the depreciation of the system for a five-year period.



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