Power Purchase Agreements

For public sector partners, the up-front investment required to design and install a solar system has historically been cost prohibitive. However, Power Purchase Agreements (PPAs) have changed that dynamic significantly. They are an essential tool in ensuring that schools, local governments, and non-profits have the ability to save money by embracing solar.

What is a PPA?

Broadly, PPAs are a simple agreement: a producer agrees to sell energy to a consumer at an agreed-upon price for a fixed period of time (generally 20-30 years) from a solar system on-site. The project is financed by private sector partners, who can take advantage of solar tax credits not available to public sector entities.

PPAs vary state by state, but looking at a single state can be instructive. For example, in Virginia, the Power Purchase Agreement program was established by the General Assembly in 2013 to encourage private-sector investment in public-sector solar, as county administrators, school superintendents, and non-profit leaders were increasingly looking for ways to meet established sustainability goals.

Financial Savings

It’s worth noting: a PPA is not the only option for public sector partners looking to solar as an energy solution – you can still purchase a system outright if that’s your preference. But PPAs often make the most financial sense for the public and non-profit sectors if their primary objective is financial savings at a time of shrinking budgets and increased financial oversight.

The power of a PPA is that it brings the public and private sectors together through a shared set of incentives and enables the best value for schools, governments, and non-profits.

We’re proud to be a leader in providing PPAs for the public sector.

How Schools are Using PPAs to Save Money

Middlesex County Public Schools is a national leader in providing educational opportunities while being good stewards of community resources. Working closely with Sun Tribe, Middlesex County Public Schools installed became the first school district in the country to have its schools 100 percent powered by on-site renewable energy. All while saving $4.74 million for taxpayers.

PPA Inquires:

Please contact us:

Katherine Knight

Director of Business Development
[email protected]

Mailing Address:
107 5th Street SE
Charlottesville, VA 22902