free solar panels : iddea

Commercial Solar Power Purchase Agreement (free solar panels)

Do you want the benefits of solar PV without the upfront costs?

PPA’s are the perfect way to GO Green without the upfront costs.

How does it work?

  • Free solar panels would be installed on your building by IDDEA.
  • This will be paid for by an investor, or group of investors, who want to specifically invest in green technologies.
  • You, the building owner, will enter into an Agreement with the investor to Purchase the electricity that the  solar panels produce.The rate at which you buy that electricity will vary from site to site. 9 out of 10 sites will pay less per unit of electricity from their roof than they would from the grid!
  • Not only is the unit cost lower immediately; that cost of electricity will not increase at the same rate of electricity from the grid.

Example;

  • A printing business currently pays 12p/unit of electricity from their supplier and use 200,000 units per year.
  • Their electricity bill comes to £24,000
  • Assume that electricity costs rise by, on average, 5% per year – this is in line with Government predictions
  • IDDEA install a 50kW installation which generates 50,980 units per year, of which it is calculated you use 93%
  • A PPA is signed which states that the business will pay 9p per unit from the solar panels.
  • This 9p will only increase by the Government stated RPI level, let’s say for this example that the RPI rate is an average of 3%.
  • The result is the business now pay £1,528 less for their electricity in the first year.
  • Due to the PPA being RPI linked and not directly to the price of electricity; the annual savings should increase per year. The year 10 saving in electricity for this example is £3,960.
  • In fact the 20 year combined savings are £146,542. All for no installation cost

 

The PPA model is perfect for all types of buildings including:
• Schools
• Hospitals
• Industrial buildings
• Commercial buildings
• Sports clubs
• Social clubs
There are no upfront costs or any costs associated with on-going maintenance.  You will have free solar panels.  The investor will monitor the installation remotely and fix any problems that may occur for the whole 25 year period of the lease.
At the end of the lease period the investor will either remove the system or the system would become the property of the building owner.

Many businesses are coming under pressure from their customers to reduce their carbon emissions, this pressure is often passed down the supply chain for them to reduce their emissions. A free solar panel system is a fantastic way to reduce the carbon emissions without spending a penny and impress your customers with your commitment to carbon reduction

FAQ’s

What if I want to sell the building during the lease period?

The building can be sold at any time during the lease period, the new owner will need to sign the PPA. In fact, there is no good reason why a new owner would not want to continue the lease as their running costs will also be reduced.

What if I want to buy the PV system in the future?

The lease agreement will contain a pre-defined cost to buy out of the agreement, this cost reduces as the 25 year period progresses. Our advice would be that if you intend to move out of the building within 10 years then maybe a PPA would not be appropriate.