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During
the early part of this decade solar energy
customers invested their own capital
to have a solar electric system installed on their facility. These
early adopters usually
received a rebate to help defray
about 50% of the cost of the installed system from a state agency or
their local electric
utility. In order for their solar
investment to provide a reasonable economic return, commercial customers
needed to be able
to utilize the 30% solar Investment
Tax Credit and five year accelerated depreciation.
Today,
most commercial, institutional and industrial customers
that decide they want solar
electricity for a portion of their needs,utilize project financing
provided through a Power Purchase
Agreement (PPA) or a lease. A Solar
Power Purchase Agreement (SPPA) is an arrangement where an energy user
enters into a contract
to purchase all the electricity to
be produced by a solar electric system to be installled on their roof or
an available ground
location. A third party investor
that can utilize the tax benefits of solar system ownership provides the
capital to build
the solar generation system and is
responsible for all the operation and maintenance of the system.
Renewable Power, as the
project developer,designs the
system, secures necessary approvals, arranges for the project financing
with a SPPA provider,
secures the materials and oversees
the construction of the system with experienced electrical and
mechanical subcontractors.
Our role includes the responsiblity
for matching the system and chosen solar technology to best fit the
customer's needs,
ensuring that the solar module
manufacturer will be able to support the 20 or 25 year warranty on
performance, making sure
the system will perform as specified
and satisfying the project financing source that the solar power system
will deliver
the projected Return on Investment
to the investor(s) who will own the project.
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Renewable Power, Inc. 108 Route 46 West, 2nd Floor
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