Solar Power Purchase Agreements
A Long-Term, Low-Cost, and Responsibility-Free Energy Solution
A solar Power Purchase Agreement (PPA) offers businesses and government agencies the ability to purchase solar electricity from a third-party provider at a set price per kilowatt-hour (kWh) with no upfront capital cost. The arrangement requires a “host” organization to provide the physical space for the solar installation (i.e. unused rooftop, land, or parking lot). A PPA provider will pay for the upfront costs of the solar installation and then take responsibility for the ownership, operation, and maintenance of the system once the project is complete.
In a PPA, the “host” organization enters into an agreement to purchase the electricity produced by the system owned by the PPA provider at a predetermined rate per kWh, the same unit of measurement on a standard utility bill. Among other benefits, solar customers acting as the “host” organization in a PPA will pay only for electricity produced by the solar system.
A well-structured PPA will allow commercial solar customers to reduce electricity costs immediately and realize increased savings over time as grid electricity prices rise. Once the PPA contract period expires (typically 15 - 20 years), the “host” organization can purchase the system at a reduced price, initiate another PPA, or have the solar installation removed.
Our PPA Partners
Click below to view our PPA partners and product details.
Learn more about commercial solar PPAs
To consult with a Cornerstone Commercial Finance team member about PPA products before choosing a provider, simply fill out the form here.