SOLAR PPA
Solar Power Purchase Agreements (PPA)
Power Purchase Agreements are designed to allow businesses to realize the benefits of solar power as a renewable energy source for their electricity without a capital investment. Typically, there is a third-party lease agreement that funnels the cost through a financing arm that can take advantage of the credits and subsidies to the fullest extent lowering the initial outlay of the installation and making it feasible for a business owner to realize solar benefits. This is particularly advantageous for non-profit or government property owned businesses. Specifically, a PPA can allow your business to have predictable energy cost with the use of clean energy.
PPA’s are agreements similar to a lease in which at the end of the typical 20-25 year term, the system is then owned by the business and will reap the benefits from then on. As a developer, Rocknoll Energy manages the process of financing, facilitates the incentives, designs and installs the system as well as manages the system for the life of the agreement.
Benefits of a Solar PPA for Commercial Properties
Businesses choosing a solar PPA benefit from zero initial capital expenditure, meaning they can allocate funds to other strategic areas while still harnessing the advantages of solar technology. This model also shields companies from future energy price volatility by locking in consistent rates, which is particularly important for businesses with high energy usage or operating in regions with fluctuating utility prices.
Moreover, PPAs align with Environmental, Social, and Governance (ESG) criteria, making companies more attractive to investors who are increasingly prioritizing sustainable and socially responsible operations. As corporate responsibility standards evolve, a solar PPA becomes not only a cost-effective choice but a strategic business decision.
How Solar PPAs Support Sustainability Goals
For companies that are committed to reducing greenhouse gas emissions and improving their environmental impact, a solar PPA offers a direct and measurable path toward those goals. Solar power systems reduce reliance on fossil fuels and minimize air pollutants, contributing to cleaner air and a healthier planet.
Installing solar under a PPA also allows organizations to report their progress toward renewable energy adoption, which is essential for CSR reporting, LEED certifications, and satisfying stakeholder expectations. This proactive approach to sustainability enhances customer trust and fosters a more loyal consumer base.
Custom Solar Design and Engineering
Every solar PPA is based on a custom-designed solar system tailored to meet the specific energy needs and infrastructure of a business. Rocknoll Energy Systems performs detailed energy audits and load analyses to ensure that the system size and output align with the customer’s usage profile.
Advanced solar technologies, such as smart inverters, battery storage options, and real-time energy monitoring platforms, can be integrated to further enhance performance and system value. This ensures that businesses not only generate clean energy but do so with maximum efficiency and cost-effectiveness.
Long-Term Value and ROI
Once the PPA term concludes, ownership of the system typically transfers to the business, enabling them to enjoy free solar power for the remaining life of the system—often another 10 to 15 years or more. This transition marks the beginning of an even more cost-effective energy future, with only minor maintenance costs and no energy purchase requirement.
The long-term ROI of a solar PPA is compelling: aside from the direct utility bill savings, businesses can potentially benefit from increased property value and improved facility appeal to tenants, customers, or investors seeking green-certified operations.
Solar PPA vs. Solar Loan: What’s the Difference?
While both solar PPAs and solar loans provide access to solar energy, there are key differences in ownership and financial responsibility. Under a PPA, the third-party provider retains ownership and handles maintenance and performance risk, while the customer simply purchases the power produced.
In contrast, with a solar loan, the business owns the system and assumes all associated responsibilities. PPAs are often preferred by organizations looking to avoid the complexities of system ownership and long-term upkeep. For companies seeking a hands-off, low-risk option, PPAs present an ideal solution.
Incentives and Tax Benefits Through PPA Structures
Though businesses using a solar PPA do not directly receive federal tax credits such as the Investment Tax Credit (ITC), the developer or financing party applies these incentives to reduce the project cost, resulting in lower energy rates for the business. Additionally, developers can take advantage of MACRS depreciation, further reducing financing costs.
These financial strategies make solar energy more accessible to a wide range of organizations that might not otherwise benefit from such incentives, particularly nonprofits or public entities.
Get Started with Rocknoll Energy Today
Choosing a solar PPA with Rocknoll Energy means partnering with experienced professionals dedicated to your energy success. From initial consultation to project completion, Rocknoll Energy Systems handles every aspect with transparency and technical excellence.
Take the first step toward affordable, sustainable, and future-ready energy by calling (513) 379-8974 for a free installation estimate and consultation. Start saving on your energy bills and contribute to a greener future without the burden of upfront costs.