Mistakes to avoid before getting solar for business - GEE Energy


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Written By: GEE Energy    23 July, 2022

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What is a Solar Power Purchase Agreement?

A solar power purchase agreement or solar PPA refers to a contract that is signed between two parties. It involves the one that produces solar power (the provider) or the power generator, and one looking to purchase electricity (the customer) generated from a solar system.

While solar PPAs are long-term in nature, customers can opt to buy the system completely after some time as per agreed conditions.

How Do Solar PPAs Work?

In a power purchase agreement, you, as the business owner (and customer in this case) set up space for installation and mounting of a solar power system.

Once that is done, it will be your PPA provider’s full responsibility to install, maintain, and own the solar system.

All that remains for you to do is to purchase electricity generated from this system according to pre-determined rates and terms of use.

Who Can Qualify for Solar PPAs?

While all kinds of businesses can opt for solar PPAs, it serves as an excellent option for those who wish to run their business on a clean and green power source without the added responsibilities of owning and maintaining a solar power system.

Irrespective of business type or size, the various solar PPA benefits that you can avail for your business allow you to create a green corporate image. Let’s check them out!

What are the Key Benefits of Solar PPA for Business?

Checkout why a Solar PPA is an excellent choice for your business.

Here are some of the biggest advantages of solar PPA that you can avail for your business!

Enjoy Substantial Savings

Businesses can lock in low solar energy rates and start saving from day one with solar PPAs. In a traditional energy model, business owners pay for electricity that they use as well as for the cost of transferring energy from the generator back to their business.

With a solar Power Purchase Agreement (PPA), they can bypass any additional costs of energy transfer and just paying for the electricity the system generates.

Reduce Upfront Costs of Going Solar

With solar PPAs, businesses can pay $0 upfront and get solar installed without any hassle. The electricity provider will arrange everything once all terms and conditions are agreed upon by all involved.

Business owners only pay for the solar energy produced, at a low, fixed solar PPA rate on a new & separate solar energy bill. Moreover, at the end of the term, they can also offer to purchase the system for as little as $1*. (T&C as applicable)

Become a Cashflow Positive Business

Australian electricity tariffs fluctuate, and prices continue to increase each year, which could significantly affect business operations. However, when businesses sign a PPA, a lower kWh price than the local tariff is determined in the contract, resulting in an immediate decrease in electricity costs.

Furthermore, a no payback period coupled with decrease in electricity costs will cause businesses to witness immediate monthly savings, generating capital for further investments.

Witness Limited Operational Risks

Under a PPA, businesses don’t have to make any repayments to pay the solar system off. They are simply purchasing the power generated from the system rather than from the grid, enabling it to sit completely off their balance sheet.

This also means that the customer will not have to worry about any operational risks or responsibility related to monitoring, maintenance, and servicing of the system when required.

Rightfully Earn the ‘Green Business’ Tag

Nowadays, with growing awareness around climate change, global warming, and their impact on the environment, going solar makes a strong statement about the sustainability and public image of a business.

Most customers now choose to associate with brands and organisations that reflect a ‘green’ image with their actions; and going solar is an excellent way for businesses to gain new clients while also fulfil their corporate social responsibility.

Getting Solar PPA with a CEC-approved Solar Retailer

When considering the option to go solar through a power purchase agreement, it is important to ensure that the solar PPA provider is a CEC-approved solar retailer like GEE Energy.

We will buy the system for your business, while you, as the business owner, simply purchase the power it generates (at a significantly lower price than what you are currently paying for grid power)!

Key Takeaways

Solar PV installations via PPA is the perfect investment for Australian businesses that want to go green without having to take any operational risks. You don’t have to worry about any infrastructural requirements.

All you have to do is buy the power generated and avail the various benefits of commercial solar without having to own, operate, or maintain a solar system!

To know more, connect with our experts today!

Call us on 1300 707 042 or send us an email via [email protected]

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