What is a Power Purchase Agreement (PPA)?
A Power Purchase Agreement (PPA) is a contract that enables businesses to access clean, cost-effective solar energy without the upfront investment. Under a PPA, Rethink Renewables installs and maintains a solar power system on your property, while you purchase the solar energy it generates at a discounted rate compared to traditional grid electricity. This arrangement allows you to benefit from renewable energy savings without the complexities of system ownership or maintenance.
How Does Billing Work with a PPA?
When you enter into a PPA, your billing process will include two separate invoices:
- Rethink Renewables Invoice: This bill covers the solar energy produced and consumed on-site. You pay only for the electricity generated by your solar system, often at a lower rate than what you’d typically pay your grid supplier
- Electricity Retailer Invoice: This is for any additional electricity usage beyond what the solar system generates. If your property needs extra power during periods of low solar production (e.g., during cloudy weather or at night), this is billed through your existing electricity retailer.
By splitting your energy costs this way, you can clearly see the impact of solar on your overall power expenses and easily track your savings.
When Will You Receive Your Solar Power Bill
Billing cycles for solar energy under a PPA typically align with your regular electricity billing schedule. This means you can expect to receive your solar bill around the same time as your conventional electricity bill—either monthly or quarterly, depending on your existing arrangement. This streamlined process ensures simplicity and transparency, making it easy for you to manage your energy expenses.
How Much Can You Save with a PPA
The exact savings from a PPA depend on several factors, including your current electricity rates, the size and efficiency of the solar system, and your overall energy usage. On average, businesses can expect a reduction of 10-20% on their electricity bills. One of the key advantages of a PPA is that the rate for solar energy is guaranteed to remain lower than what you’d pay your electricity retailer, offering consistent savings over the contract term.
Environmental Benefits of Solar Power through a PPA
Choosing a PPA with Rethink Renewables is not only a financially smart decision but also an environmentally responsible one. By switching to solar energy, you reduce your reliance on fossil fuels, cutting down your carbon footprint and contributing to the reduction of greenhouse gas emissions. Solar power is a clean, renewable resource that supports broader sustainability goals, helping your business make a positive impact on the environment while meeting its energy needs.
Partner with Rethink Renewables for Your PPA
Rethink Renewables offers a seamless and hassle-free pathway to solar energy through our tailored Power Purchase Agreements. With no upfront costs, ongoing maintenance covered, and guaranteed savings, a PPA is an ideal solution for businesses looking to embrace clean energy and cut down on their electricity expenses. Contact us today to learn how you can start saving and make your business more sustainable with a solar PPA.
