PV SOLAR POWER PURCHASE AGREEMENT SUMMARY
The ‘power purchase agreement’ relates to the supply and installation of Solar PV equipment, for public and private organisations, to reduce their energy costs and carbon usage - along with the subsequent payments of carbon/climate taxes.
In recent years, similar schemes have been offered by unscrupulous suppliers, that have benefited the supplier -but often not the client, whereby the client has received a fraction of the expected benefit – if any at all. As a company with a strong social agenda we have begun to address this.
A portion of profits made from our installations will be used within the local community to reduce fuel poverty and increase carbon / fuel awareness. For more information on this aspect, please get in touch.
How does it work?
Over 99% of the UK’s commercial buildings use electricity of some form and many of those can benefit from reduced costs with the provision of a solar PV installation. However, despite significant reductions in panel costs and the associated equipment, the cost of materials and installation is still often prohibitive to many public and private organisations.
The PPA is a standard agreement that many organisations will already have with their current energy provider, stipulating a cost per unit of energy supplied- for an agreed period of time. The Solar PPA is exactly the same and sits alongside the existing agreement with whichever supplier is used.
Using the site address, together with 12 months billing information, we will conduct a desktop survey of the useful roof-space & the location and then present the bespoke options available to the organisation.
We are usually able to offer a solution that will provide a significant portion of a site’s electricity requirements given enough useable roof-space and\or surrounding land.
Size of the installation is not an issue; however, the benefits tend to become mutually appealing where a site can utilise a 24 kWh system at least and we are currently involved in systems of up to 2.5 MWh.
Materials are supplied and installed and will require no capital expenditure by the organisation.
How Can Solar Panels be Provided Free of Charge?
The simple answer is they can’t. In recent years, the ‘Feed-in’ tariff enabled the energy produced to be sold back to the national grid for a generous price. This government subsidy proved to be unsustainable and ended in April 2019, which coincided with many providers exiting the market. Our proposition does not rely on the FIT or export of energy, as we aim to utilise all of the Solar PV energy produced on-site.
Our PPA option sells the electricity produced by the solar PV installation back to the site at a much lower cost per kWh than they are currently paying to their energy supplier. This charge covers the cost of the installed equipment and also yields a profit for a fuel poverty initiative in a community local to the site. The carbon savings are fully attributed to the site\organisation. The unit price agreed for the PPA will also be fixed for the duration of the agreement (10-15 yrs), whereas the price charged by a grid-reliant supplier is likely to increase by around 10% each year according to OFGEM.
Due to the quality of our equipment the site is likely to benefit from free electricity generation for a further 10 to 15 years after the conclusion of the PPA.
The ‘power purchase agreement’ relates to the supply and installation of Solar PV equipment, for public and private organisations, to reduce their energy costs and carbon usage - along with the subsequent payments of carbon/climate taxes.
In recent years, similar schemes have been offered by unscrupulous suppliers, that have benefited the supplier -but often not the client, whereby the client has received a fraction of the expected benefit – if any at all. As a company with a strong social agenda we have begun to address this.
A portion of profits made from our installations will be used within the local community to reduce fuel poverty and increase carbon / fuel awareness. For more information on this aspect, please get in touch.
How does it work?
Over 99% of the UK’s commercial buildings use electricity of some form and many of those can benefit from reduced costs with the provision of a solar PV installation. However, despite significant reductions in panel costs and the associated equipment, the cost of materials and installation is still often prohibitive to many public and private organisations.
The PPA is a standard agreement that many organisations will already have with their current energy provider, stipulating a cost per unit of energy supplied- for an agreed period of time. The Solar PPA is exactly the same and sits alongside the existing agreement with whichever supplier is used.
Using the site address, together with 12 months billing information, we will conduct a desktop survey of the useful roof-space & the location and then present the bespoke options available to the organisation.
We are usually able to offer a solution that will provide a significant portion of a site’s electricity requirements given enough useable roof-space and\or surrounding land.
Size of the installation is not an issue; however, the benefits tend to become mutually appealing where a site can utilise a 24 kWh system at least and we are currently involved in systems of up to 2.5 MWh.
Materials are supplied and installed and will require no capital expenditure by the organisation.
How Can Solar Panels be Provided Free of Charge?
The simple answer is they can’t. In recent years, the ‘Feed-in’ tariff enabled the energy produced to be sold back to the national grid for a generous price. This government subsidy proved to be unsustainable and ended in April 2019, which coincided with many providers exiting the market. Our proposition does not rely on the FIT or export of energy, as we aim to utilise all of the Solar PV energy produced on-site.
Our PPA option sells the electricity produced by the solar PV installation back to the site at a much lower cost per kWh than they are currently paying to their energy supplier. This charge covers the cost of the installed equipment and also yields a profit for a fuel poverty initiative in a community local to the site. The carbon savings are fully attributed to the site\organisation. The unit price agreed for the PPA will also be fixed for the duration of the agreement (10-15 yrs), whereas the price charged by a grid-reliant supplier is likely to increase by around 10% each year according to OFGEM.
Due to the quality of our equipment the site is likely to benefit from free electricity generation for a further 10 to 15 years after the conclusion of the PPA.
How Is Our PPA Different To Others?
Although our calculations utilise industry-leading methods and principles, elements such as the irradiance levels are based on historical data. To maintain client cost savings, we tend to only charge for 70-80% of the energy produced by our systems even though this is already at a reduced cost from the existing grid supply. A charging pattern that relates to site usage will often provide free periods of supply, such as weekends and Holiday periods, but each site is unique and appraised to maximise site savings where possible.
For example, with schools, we would aim to charge for Mon-Friday and in term-time only. This means that the power generated and used during any pre-specified ‘down-time’ is not chargeable; therefore, most school holiday periods would benefit from free of charge production to maintain savings.
Also, other PPA models tend to increase the price per kWh by 2-3% each year, to mitigate the effects of inflation, however ours does not. The price will remain the same for the agreed period, which means that, as the grid-reliant suppliers increase their prices each year – the site continues to enjoy even bigger savings.
How will I know the system is working?
Our systems include a real-time online monitoring facility, which enables us & the client to view the levels of electricity produced each day, week, month, year, or since installation. It will also alert specified recipients by email, if any part of the system is not functioning properly – down to an individual panel, which makes any maintenance required – quick & easy.
Installation & Warranty
All installations are carried out by highly experienced installers and utilise a range of fixing methods, to ensure that the fixing method used for panels does not compromise the integrity or any warranty of the existing roof and building. All installations are under warranty for the duration of the agreement. All installations are signed off by an independent structural surveyor and meet all insurance requirements.
How Can We Afford To Offer Such A Deal?
Our solutions are provided by a like-minded collective of companies including not for profit PPE within the production, installation and financing of this offer. We aim to provide the most efficient and reliable equipment – with lower margin requirements than our commercial competitors within this sector. In addition to People Powered Energy using profits to tackle fuel poverty, we also see value in our supply chain partners – who also engage in projects & principles that benefit their communities.
Although our calculations utilise industry-leading methods and principles, elements such as the irradiance levels are based on historical data. To maintain client cost savings, we tend to only charge for 70-80% of the energy produced by our systems even though this is already at a reduced cost from the existing grid supply. A charging pattern that relates to site usage will often provide free periods of supply, such as weekends and Holiday periods, but each site is unique and appraised to maximise site savings where possible.
For example, with schools, we would aim to charge for Mon-Friday and in term-time only. This means that the power generated and used during any pre-specified ‘down-time’ is not chargeable; therefore, most school holiday periods would benefit from free of charge production to maintain savings.
Also, other PPA models tend to increase the price per kWh by 2-3% each year, to mitigate the effects of inflation, however ours does not. The price will remain the same for the agreed period, which means that, as the grid-reliant suppliers increase their prices each year – the site continues to enjoy even bigger savings.
How will I know the system is working?
Our systems include a real-time online monitoring facility, which enables us & the client to view the levels of electricity produced each day, week, month, year, or since installation. It will also alert specified recipients by email, if any part of the system is not functioning properly – down to an individual panel, which makes any maintenance required – quick & easy.
Installation & Warranty
All installations are carried out by highly experienced installers and utilise a range of fixing methods, to ensure that the fixing method used for panels does not compromise the integrity or any warranty of the existing roof and building. All installations are under warranty for the duration of the agreement. All installations are signed off by an independent structural surveyor and meet all insurance requirements.
How Can We Afford To Offer Such A Deal?
Our solutions are provided by a like-minded collective of companies including not for profit PPE within the production, installation and financing of this offer. We aim to provide the most efficient and reliable equipment – with lower margin requirements than our commercial competitors within this sector. In addition to People Powered Energy using profits to tackle fuel poverty, we also see value in our supply chain partners – who also engage in projects & principles that benefit their communities.
Please talk to us we have many ways to help and are happy to do so.
