3. Power Purchase Agreement (PPA) – Buy the energy

How Renewable Energy PPAs Work
A renewable energy PPA is a financing arrangement that allows businesses or government agencies to purchase clean electricity with no upfront capital cost. To achieve this, a “host” organization provides unused rooftop, land, or parking lot space, facility space as the location for an energy installation. MI, as the third party PPA provider, pays for the cost of the installation and assumes all responsibility for ownership, operation, and maintenance after the solar project is complete.  As the host organization, you enter into an agreement to purchase the solar electricity produced by the system owned by the PPA provider at a predetermined rate per kilowatt-hour, the same unit of measurement on your standard utility bill.

Save on Electricity Every Month

A well-structured PPA allows you to reduce electricity costs immediately and realize increased savings over time as grid electricity prices rise. Once the PPA contract period expires (typically after 15 - 20 years), you can purchase the system at a reduced price, initiate another PPA, or have the energy system removed.


MI PPA Benefits

  • No Capital Investment  -  No initial capital investment, since you only pay for the solar electricity that is produced.
  • Fixed Energy Rates  -  A PPA provides a powerful hedge against volatile electricity prices.
  • Full-Service Project Management & Maintenance  -  MI designs, develops, and operates your clean energy system from start-to-finish. You have no responsibility for owning, operating or maintaining the solar system equipment.
  • Monetize Tax Credits & Solar Incentives  -  Benefit from solar tax credits, even if your organization has no tax liability to offset. The PPA financier is able to monetize available tax incentives and pass these savings on to you in the form of a lower PPA rate.
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The MI PPA:

MI has developed, financed, and installed many megawatts of renewable energy systems globally using all resource including wind, solar, geothermal, CHP, biomass, and various hybrid combined technologies. Our market-tested, track record proven, process is designed to be streamlined and easy to implement. MI partners with top tier PPA financiers, technology suppliers, law firms, and collaborates with Government Trade Promotion and finance Organizations, NGO’s, International Banks, , and various equity/debt funds, as we work with you to design the best PPA to meet your organization’s energy needs.

 

 

 




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