Power Purchase Agreements, Commercial Solar Installation,
Infrastructure Funding, Solar Panel Cleaning & Marine Energy
Can You Fix Long-Term Your Electricity Prices?
Yes!
The answer to that is “YES” and not only for the short term but for much longer terms perhaps 20 years. This can be achieved by installing solar panels with batteries via a Power Purchase Agreement (PPA).
1. What is a Power Purchase Agreement (PPA)?
2. How Does this Change Long-Term Pricing of Energy?
3. Energy Budgeting:
A PPA is an agreement between an organisation (say your company) and a commercial solar panel installer with a PPA supplier (say AngliaSolar). The PPA provider would install, own, and maintain the solar panels and batteries for you. In exchange you agrees to purchase the electricity produced by the solar system at a predetermined price for the duration of the agreement.
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Fixed Energy Rate: Knowing the installation cost of your solar and battery system allows the PPA provider to fix the price per kilowatt-hour (kWh) of electricity to you subject to a small increase over time for inflation. Therefore fluctuations in electricity supply prices from the grid are negated allowing you to enjoy stable or only slightly increasing price over the period agreed between the parties. The predictability in energy pricing contrasts with the volatility grid supply pricing which is affected by factors such as fuel prices, supply-demand imbalances, and market conditions.
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As the energy price is fixed or predictable, businesses can better budget their energy expenses. This stability is especially important for companies with tight margins that need to account for energy costs in their overall financial planning.
Additional Benefits:
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Lower Upfront Costs: Typically, there is no upfront capital investment required from the business in a PPA, as the solar provider covers the costs of installation and maintenance. This makes the transition to renewable energy more accessible and enables businesses to start saving on energy costs immediately.
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Environmental Impact: Beyond cost savings, switching to solar can also help businesses meet sustainability goals and reduce their carbon footprint.​
In Summary:
Through a PPA, a business can lock in a stable, predictable energy cost by transitioning to solar power and possibly adding storage. This can help convert energy costs from a fluctuating variable to a more predictable, fixed expense, enabling better long-term financial planning and protecting against utility price increases.
