Jul, 2014

“Pay as you use” solar – Epho now able to offer PPA for commercial solar (Power Purchasing Agreements)

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On 29th July 2014 Epho received confirmation that it has the appropriate exemption to offer a PPA.

This opens up a new avenue for those interested in installing solar power without any upfront cost.

PPAThe AER is the body that regulates the sale of electricity. This clarifies what a PPA is. In essence, for someone to sell electricity, they need to have

1. A full retail licence, or

2. An exemption from that licence. (This is what Epho now has).

What does this mean? It means you can have a solar system installed without paying for it upfront.

With a solar PPA the provider is usually not the MAIN provider of power. The customer will retain their usual supplier (retailer) and take out a separate agreement for the provision of solar power.

This solar power then blends with grid power as it is used in the business, thus decreasing the demand of the customer from the grid.

PPAs can be structured in many different ways, but the most common is to contract the purchase of power from the solar system for a number of years – say 7, 10 or 12 years at a negotiated price, or a price which is set as a % less than the customer’s main power price. Thus, guaranteeing a saving. The ownership of the system may pass to the customer at the end of the contracted period, or be available for purchase at a predetermined price.

The main goal is to allow people to benefit from the lower ongoing cost of solar power, without having to make an upfront investment in the system. The contract for the ongoing purchase of power gives the system owner security of a stream of revenue, so that they are willing to invest in a system.

It’s almost the same as paying per copy on a photocopier, rather than buying the photocopier.

There’s three main criteria to work out if a PPA will suit you:

contestable account power bill breakdown1. The rate you currently pay for power. If you are a contestible account and pay a low rate, a PPA may not offer any savings. If you are on a standard tariff, it will probably work.

(This is a key driver in all solar!)

2. Your pattern of consumption – do you have sufficient daytime use to justify the installation of a solar power system?

3. Your time frame for being in your premises. You don’t need to own the premises, but you need to know you’ll be there for long enough to make the investment worthwhile.

If you think you’d suit a PPA, please call us on 1300 661 253

Finance, including operating leases which offer “no money down” solar are game changers, and making solar affordable without capital expenditure.