A purchase power agreement in Pensacola, FL, is an agreement in which a third-party contractor installs, owns, and manages an energy system on a customer’s property. Then, the consumer purchases the system’s electric output for a certain time.
With a PPA, the customer may obtain reliable, frequently affordable power without up-front costs. At the same time, the system owner can benefit from tax benefits and make money from the sale of electricity. PPAs can also be used for other energy technologies, such as combined heat and power, even though they are most frequently utilized for renewable energy systems.
Eligibility
A project must be situated in a state or other legal jurisdiction where third-party ownership of energy-producing equipment is permitted to qualify for a PPA. Some state laws prohibit non-utility suppliers from selling electricity in regulated marketplaces. You may speak with the professionals at Beggs & Lane for further details on where PPAs are offered.
How It Works
The client enters into a purchase power agreement in Pensacola, FL, with a third-party developer to buy electricity produced by solar panels, wind turbines, combined heat, power machinery, or other energy-producing methods on the roof of a facility or in the neighborhood.
In leased premises, the host and customer may be distinct entities, even if the customer frequently supplies the actual space to host the system. For the length of the PPA, the equipment is owned by the developer and its investors.
In most cases, the client pays little to nothing for the developer to coordinate the earliest phases of the project, such as bridge finance, design, and permits. The developer may install equipment internally or through a hired installer.
