Sustainability Stewardship Matters

April 13, 2023

5 Things to Consider When Deciding on a PPA Versus a Solar System Purchase

Initial Investment

Do you have the funding to support the out-of-pocket costs for PV (photovoltaic) panels, transformers, monitoring systems, installation, etc.? Does your institution or business have the funding for a PV system or are you looking to offset your energy consumption without the upfront financial investment?

Energy Costs

If you want to avoid purchasing your power from an often volatile energy market, a PPA (Power Purchase Agreement) with a reputable solar installation firm can lower your energy costs through negotiating a fixed flat rate over the life of the contract.

Solar System Maintenance

Taking full ownership outright of a Solar System will require you to handle all maintenance not covered by the installer's and manufacturer's warranty. This will require trained and knowledgeable personnel, or a service contract with an outside vendor, to maintain the equipment over the life of the system. Entering into a PPA , the owner of the solar system is obligated to maintain the equipment within the terms and conditions of the contract.

Carbon Neutrality Goals

Renewable energy, such as solar, can play a big role in lowering carbon emissions from your campus or business. Most PPA’s will have a buyout option after 10-15 years of exchanging Solar Renewable Energy Credits and Transition Renewable Energy Certificates in which you can then account for the carbon savings.

Current Legislation

The Inflation Reduction Act is helping to facilitate outright purchases of Solar Systems currently at a national level. You should investigate if your state has tax or rebate incentive programs to improve the ROI of the system.

Circadia Group serves as the owner’s representative to academic institutions and businesses as they pursue decarbonization. Through our program management service, we learn a lot about what is and is not working on the different programs we manage. We created this newsletter to share some of our experiences with others we know who are pursuing similar endeavors.

Circadia Group

(609) 375-2899

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