New Jersey BySolar
973.784.4191 Renewable Energy Systems for Businesses & Residences

Power Purchase Agreement / Host a Solar System

A solar Power Purchase Agreement (PPA) enables a business to purchase lower-priced electricity produced by a solar electric system without having to purchase the system outright.

Here's how a PPA works: an investor (or investor group) owns the solar system, but the business owner hosts the system on its property. The host agrees to purchase the electricity produced by the system at a predictable rate (which will be lower and less inflationary than utility rates).

Benefits to Investor:

  • Monthly electricity payment from the host
  • Investment Tax Credits
  • Depreciation tax benefits
  • Revenue from SREC incentives offered by the federal and state governments

Benefits to Host:

  • No Capital Investment - The investor provides the capital to purchase the solar system.
  • Hedge Against Price Inflation - Obtain a long term contract for electricity at a predictable price.
  • Avoid System Responsibility - The investor is responsible for the design, construction, maintenance, repairs, and operation of the solar system.
  • Corporate Acceptance - A long term power purchase agreement may be more acceptable to a company's management, directors, and stockholders.
  • Public Relations Benefits - Hosting a solar system demonstrates sensitivity to the environment and to the health and welfare of employees and community.
  • Decrease the Business's Carbon Footprint - Utilizing solar power will immediately reduce your emissions of CO2 caused by the burning of fossil fuels