Finance Large Projects With Solar Power Purchase Agreements (PPAs)

500 MW of Experience in Solar Parks

With experience working on both on a local and global utility-scale solar energy power plants, Conergy has unique insight into the financing of solar power plants.

In the planning stages, Conergy provides an evaluation of alternate off-taker potentials, detailed financial models for go/no-go decisions, full lifecycle project cost and an analysis of financial returns and investments. 

While Conergy offers a variety of different financing agreements, the most popular is the Solar Power Purchase Agreement (Solar PPA). The Solar PPA allows organizations to take advantage of solar energy tax incentives. In a Power Purchase Agreement, a third-party developer owns, operates, and maintains the solar energy system while a host customer agrees to site the system on its property and purchases the system’s electric output from the solar services provider for a predetermined period and at a stable cost. This financial arrangement offers lower cost electricity, while the solar energy service provider receives financial benefits, such as tax credits and income generated from the sale of electricity. The solar power purchase agreement (solar PPA) results in no capital investment or maintenance costs.

The Other leases

Partnering with well-established financial services company specializing in the benefits and asset value of a renewable energy system, Conergy can provide a variety of specialized solar energy system leases that offer many advantages over traditional bank loans.

Solar Power Purchase Agreement

• By leveraging Conergy’s Solar PPA program, end users can begin to save on electricity cost at the launch of the solar energy system. The electricity savings will increase over time as the cost of solar energy remains constant, but the cost of typical electricity sources continue to rise.
• Conergy’s Solar PPA can take advantage of government rebates, grant programs, tax credits and depreciation for which end users may not independently qualify. By combining all government incentives, Conergy lowers the cost of electricity produced by solar energy.
• With a Power Purchase Agreement, the end user is not responsible for the maintenance, monitoring or operating costs.
• The utility or 3^rd part that owns the system immediately begins receiving returns for the system through electricity bills and tax incentives

An additional financing option is the Solar Lease Agreement:

Solar Lease Agreement

• 7-10 yr contract for fixed payments below current electricity costs;
• Buyout provision at lease-end;
• Customer sells Solar Renewable Energy Certificates (S-REC) and receives Money or Receives Performance Based Incentive (PBI)
• Finance company usually takes tax credit;
• Customer pays for Operation and Maintenance (O & M)

Other solar energy financing options offered are:

Finance Lease

• Principal method of financing and strongly similar to conventional bank financing, only more flexible
• Capital leases allows the customer to receive low interest rate, while keeping a company's cash at work in the business; write off all interest paid on lease

True or Operating Lease

• When customers cannot take advantage of tax credits, or when they want to pay for a system with operating dollars, not capital dollars.

Tax Exempt Lease Purchase

• Reduced interest rate financing for government and non-profit entities who wish to own their solar system.

Solar Host Agreement (SHA)

• Term contract for electricity and for customers who cannot take advantage of tax credits.  Programs for various project sizes.