Many organizations, institutions, and businesses lack the upfront capital for a solar project, but they want to reduce their energy costs and achieve their sustainability goals. This can be a difficult hurdle. Power Purchase Agreements are a financing tool available for Illinois projects to overcome this barrier.
Through a Power Purchase Agreement, a third party financial investor owns an array that serves to offset energy usage at a particular site owned by the entity (ie church, school, business without tax liability to leverage) in need of capital to install the system. The organization or business needing that solar energy agrees to provide the space for the array, have it interconnected behind their meter and purchases the energy from the investor. The energy is purchased at a rate less than their current utility rate, which saves them money. The agreements can span up to 25 years with options for the onsite organization to own the system after a minimum number of years, typically 6-7. Details such as these are worked out from project to project.
Quite a few churches, municipalities, schools, and businesses have used a Power Purchase Agreement to power their facilities. A few of our clients include Village of Pickneyville, Village of Marissa, Growmark, John A. Logan College, Pathways Unlimited, Chillicothe Library District, Mennonite Church of Normal, and Heaven’s View Christian Fellowship. If you are interested in us evaluating whether your organization, business, or government facility might be a good fit for a PPA, please fill out the form below.
