Like Snowflakes, No Two PPAs are Alike

By now, you’ve made the decision to go solar. You know it’s a low-risk technology that will significantly reduce your operating costs, protect you from increasing utility rates, and deliver numerous environmental benefits. You’ve also determined that paying for the installation with cash is not an option.

You’ve looked into clean renewable energy bonds (CREBS), leases, and property assessed clean energy (PACE) as ways to go solar without the upfront cash investment. But your credit is good or you can commit to purchasing energy in 20-year chunks. So you’ve decided that the best financing solution will be the tried-and-true, pay-as-you-go-for-the-energy-consumed-no-money-down power purchase agreement (PPA).

At this point, you have the two “best” proposals in hand. Both are for projects of the same size, but one offers a lower price per kilowatt-hour ($/kWh). All other things being equal, the lowest-priced proposal wins, right?

WRONG!

PPAs offering a lower $/kWh can sometimes be the best option, but not always. What you really need to evaluate is risk, and not just price. Our guide to PPAs will help you assess the overall risk of a PPA proposal.

Download the entire guide here.

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