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.
- 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