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For a company or an organization, going with a Power Purchase Agreement (PPA) is the quickest way into the use of Solar Power without a heavy capital expenditure. This path allows you to concentrate your finances in the direction that benefits you most while achieving a significant short and long term reduction on your electricity expenses.

At ERX, we offer PPA as an alternative as opposed to an outright purchase of a Solar PV System. So what does the process entail for a company or a home owner to enter into a Solar PPA? Well for one we need the rights to be able to install on a given location. After that, ERX takes care of everything from assessing, designing, engineering, financing, and installation. Once a PPA is signed, just like a customer purchased solar power system, we assign a project manager to the installation and then obtain regulatory certifications along with rebates and incentives. The only difference between a client paid and a PPA installation is: on a PPA installation, the investor and/or its assigns owns and assumes responsibility for maintaining, monitoring the equipment, and assuming peak system efficiency. There is zero cash outlay involved for the customer, and it now becomes in the interest of the owner of the PPA installed solar power system to make sure that their investment is producing optimum power throughout the term of the PPA.

With ERX as the Roofing contractor, System integrator, and financier, all is taken care of for the customer. We arrange a solar installation based on a Power Purchase Agreement with an investment firm that underwrites the financing. You, the customer then no longer has to worry about any performance or maintenance issues while paying discount on electricity. It is all done automatically by the solar PV system owner. Solar PPA’s are financed through debt and tax equity by investors who benefit from various federal and state incentives and tax benefits. When these solar power benefits are efficiently provided to third party investors, PPA providers like ERX are able to translate the associated lower capital costs into lower-cost solar electricity to its customers.

Solar PPA’s are an excellent way to go solar. Whether you are a residential, commercial, or non-profit organization it is a win-win situation for all involved. You the customer get a substantial short and long term discount on your electric bill. The investor that finances this arrangement gets the benefit of being able to depreciate quicker than the norm due to government incentives. Investors then quickly achieve positive cash flow with little risk. On the other hand, managers, designers, installers, and maintenance providers of a solar power system also share in the benefit of a PPA as they are paid to design, build, and maintain a solar installation. For non-profit organizations that cannot take advantage of tax credits, the reduction in their energy payments is like newly found revenue stream that can be put to immediate good use. PPA’s can be transferred to the owner of the installation site according to the contract terms.

When it comes to helping our environment, Solar Power Purchase Agreements even makes more sense. ppa solar nj,