Power Purchase Agreements
If you own Solar Panels and you don't use all the energy that you generate, you can either store the surplus in batteries or earn money by feeding it back into the National Grid. It’s your choice, because this is YOUR energy, once you have purchased the solar system that generates it.
But you might not want to own your own Solar PV Plant. Maybe you don’t have the available cash, time, or project-management expertise to construct such a system on your property.
And yet, you recognise that you’re paying your current electricity supplier a lot of money. You’d like to pay them less. You know there is money to be made from Solar PV Systems
There must be an opportunity here
There has to be a creative solution to your dilemma, because there’s a lot of money to be made by finding one. The key is to find a third-party: a sort of intermediary who can offer a way to divide this money between you, an Energy Company and, of course, himself.
The middle-man is usually a well-established Finance Company, but don’t let that put you off. Your only relationship with that company is through an agreement to purchase as much power as you need. This power will be sold to you at a rate that is guaranteed to be both cheaper than conventional electricity supply and predictable for the next 25, 30, or perhaps even 40 years. This agreement is called, unsurprisingly, a Power Purchase Agreement, or PPA.
What happens when I sign my PPA?
Once you have established your PPA the Finance Company will take care of everything else. They’ll provide all the system design, construction, connection to the National Grid (where applicable) and maintenance. Of course, they don’t do all this directly themselves, but they rely on a nationwide network of approved installers like ourselves. It’s a tried-and-tested business model, implemented many thousands of times in this country and abroad. You don’t have to contribute a single penny to this construction project.
Choosing the right partner
As you can imagine, not all PPAs are the same, and choosing the right Finance Company is a critically-important process. Fractions of a penny in contracted cost per kWh will certainly mount up if you use a lot of energy for a lot of years.
At Photon Project Management, we have chosen to work with Finance Companies who strike an appropriate balance across competing interests, providing arrangements that are not just mutually-beneficial with our clients, but also objectively fair.
What do I need?
An area of roof larger than about 100 square metres or an area of under-utilised land that might be suitable for a ground-mounted solar array. If you have either, then just get in touch with us and let’s talk about whether it makes sense to take things further.
There is much more detailed information to be found with a simple Google Search if you're that way inclined. You can learn, for example, about how a PPA will positively affect your Green Credentials, how and why Finance Companies find PPAs to be attractive investments, and much more.
We think the additional information is interesting, but not critical. We want to help you make the best use of your valuable time, so we’ve provided here the essential basic information to put you in the driving seat on the journey towards more energy security and wealth.