Power Purchase Agreement
How Power Purchase Agreement (PPA financing) works
AREP purchases/owns solar + storage system
AREP pays for all capital costs and O & M
Customer enters into PPA with AREP setting price for power over 10/15/20 year term
Price will be lower than customer currently pays utility
Contract will be hedge against future price increases
Savings are created and increase over the life of the contract
Which property owners benefit From PPA?
(cannot use tax benefits)
Tax-exempt entities/Not for Profits (cannot use tx credits/losses related to power system ownership)
Hospitals/Health care systems
REITs (typically unable to use credits)
Pass through entities (with investors unable to use credits); LLC’s/private equity/AG Co-ops, etc.
Any property owner seeking lower power cost without capex commitment (Continuation of 5)
Savings Realized Over 25 Year PPA Are Shown In Blue
1: This EE investment is shown for illustrative purposes only. While it represents the type of installation that Apex would finance, Apex did not finance this installation.