A System for Savings
Much confusion surrounds solar power generation today, particularly regarding funding options and how they ultimately impact customers.
Many businesses have been led to believe - incorrectly - that they can incorporate a solar array, pay below current market prices for power and market themselves as a "green" business using sustainable energy.
While solar panel installations do generate environmental and financial benefits, businesses typically must choose between the two with a solar option that best fits their energy strategy and budget.
OPTION 1: Owning
Only businesses that pay for their solar project, all operations and maintenance costs and monetize the Solar Renewable Energy Certificate (SREC) can take advantage of the “green value” the system provides. Ownership requires a significant up-front capital investment.
OPTION 2: On-Site Generation
Businesses primarily concerned with the financial and physical benefits of solar can opt to build an on-site solar generation asset at their facility with an external solar provider. With this approach, a solar provider like Constellation handles all costs and tasks associated with building, owning, operating and maintaining the solar arrays.
At Constellation, we provide customers with a Power Purchase Agreement (PPA) or Solar Services Agreement that features the known price/kWh for power (e.g., standard electricity) over the term of the contract, typically 20 years.
Business customers avoid a large capital expense and receive budget certainty with a proven cost-management strategy. Plus, Constellation secures rebates for customers from state agencies and utilities as well as federal and state tax incentives if available.
Our customers also benefit from industry-certified measurement and reporting systems that provide documentation of cost savings and solar energy production.
While solar customers can publicize their innovative solar generation strategy, they cannot claim they use solar power or that they have “greened” their business operations. Why? Because Constellation has monetized the SREC asset, and subsequent value, to buy down the cost of the solar project.
OPTION 3: Leasing
In certain situations, customers may have a unique opportunity to lease their available space to Constellation for a solar panel installation. These customers gain a secondary revenue stream and benefit from the positive association of supporting renewable energy development.
A Greening Alternative
Businesses looking to achieve cost savings and sustainability goals may prefer to enter into a PPA and secure less expensive, highly accessible Green-e Certified RECs through a separate contract.
This flexible, easy transaction offers the budget stability of a PPA plus the marketability of a truly green organization.
Solar photovoltaic power is generated by transforming sunlight that hits solar panels into electricity as direct current (DC). An inverter turns that DC into alternating current (AC).
Businesses use the generated power and push back to the grid any excess supply.
For every MWh produced, the system generates an environmental attribute which may have separate value depending on the market (sometimes called a Solar Renewable Energy Certificate or SREC).
What could owning, leasing or incorporating a solar installation mean for your energy strategy? Have one of our specialists contact you.