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

 

          Private Schools

 

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.

RENEWABLE ENERGY PARTNERS