Solar Energy Financing & Power Purchase Agreements
Borrego Solar offers the most efficient and proven solar financing packages to customers who want to go solar for no money down.
Our Solar Financing Difference
A significant outlay of both capital and resources are needed to purchase, install, and maintain a solar power installation. That’s why Borrego Solar offers the most efficient and proven solar financing packages to customers who want to go solar for no money down. Once the scope of your project is defined and any available rebates and incentives are identified, the Solar Finance Team will model various finance scenarios until the lowest price per kWh is identified.
What is a PPA and what makes it integrated?
Power Purchase Agreements (PPAs) are long-term contracts to buy clean electricity at a predetermined rate. While the PPA provider absorbs the costs of design, construction, operation, and maintenance; customers realize a lower utility bill immediately, as they purchase the clean solar electricity produced at a predetermined (below-the-grid) rate.
Attached to the local utility grid, a customer substitutes a portion of their traditional monthly electric bills with the bill for the solar energy. The PPA provider consumes any available solar incentives and passes the savings on to the customer.
At Borrego Solar, our PPAs are “integrated” because we are both the PPA provider and the solar installer. Traditional PPAs have a PPA provider looking to make good on their investments and a solar installer interested in the lowest cost engineering, procurement, and construction.
At Borrego Solar, the interests of both the installer and the financier are aligned. That means our team will design, construct, and maintain the highest quality system, because it’s also our investment.
Integrated PPA Benefits
- Reduced utility bills–Cash flow positive from day 1 to year 20
- Protection from escalating energy rates–Most experts predict that the cost of electricity will continue to increase faster than inflation due to pressure from global demand growth and environmental regulations. Locking in a low rate today will protect you tomorrow, and if prices rise as projected, your savings will increase
- No production or performance risks–The risk of a system performing less than projected falls on us
- Carbon footprint reduction–On average, 100kW of DC solar power installed in North America will reduce approximately 175,000 lbs of CO2 annually
- No operation or maintenance expenses–Customers only purchase the energy produced, so all operation and maintenance is on Borrego Solar.
- Marketing opportunities–Switching from brown power to clean renewable energy is one the best marketing and PR tools available to businesses and municipalities.
- Freeing up of capital for critical investments–Saving money on operating costs allows you to preserve your capital to invest in core business opportunities
Typical PPA Terms:
- 20-Year contract length
- Cash flow positive in year one
- Fixed escalator of 2-4% per year
- Multiple buy out options or the system can be removed at the end of the contract
- Option to extend after the contract term has completed