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Power Purchase Agreement

What it is and why you should you consider it.

Power Purchase Agreements can help fund Energy Efficiency projects.

Power Purchase Agreements (PPAs)

Utilities, like gas, electric and water, are essential, and they run 24x7x365. You need them to run continuously and reliably.

Thinking about replacing your worn, inefficient infrastructure but not sure how to pay for it? Don’t avoid making the investment before it’s too late and you’re forced to make fast, expensive decisions rather than implementing a well-thought-out, rational and cost effective plan.

Purchase Agreement. This is not financing. Your provider partner assumes ownership of the new, energy efficient equipment, and also the inherent risks and responsibilities. You pay only for the usage. No RFIs, RFPs, Budgeting, Financing, Bond, Taxes or Leases.

Energy efficiency measures such as HVAC retrofits, LED lighting and plumbing controls can be financed with a PPA.

What Are the Options?

What Energy Efficiency Measures can be financed this way?
• LED Lighting
• Smart Plumbing Controls: Low-Flow
• HVAC Retrofits
• Alternative Fuel (CNG/LPG)
• Smart Motor Controls (VFD)
• High Efficiency Motors/Starters
• Boilers, Chillers, Refrigeration
• Smart/Precision Irrigation Systems
• Building Envelope Upgrades
• Co-Generation Systems
• Waste Systems

PPA customers range from facilities as small as bus terminals to as large as entire counties. Cities, counties, states, correctional facilities, airports, bus terminals, train stations, public lighting and water and sewer authorities, civic arenas, stadiums, hospitals, parks, libraries, police, fire and EMS Operations, public schools, colleges and universities.

EPDM Roof Restoration and Upgrade

Not All PPAs Are the Same

True sustainability means more than implementing smart technology. You must make smart decisions and invest in a smart energy infrastructure. When you choose your partner in your sustainability efforts, choose smart. 

Unlike an ESCO, Shared Savings or PPA, a smart funder will recognize that there are some things, like windows, roofs, boilers, insulation, and building envelope changes that are not SMART TECHNOLOGY, but are part of the SMART DECISIONS and SOLUTIONS you need to make and fund. Your provider should work cooperatively with you to make these decisions, and provide nothing but the most proven names and solutions available in the market.

ESCO, Shared Savings and PPA’s are all long-term agreements that appear as long-term liabilities on your balance sheet. That’s fine for some, but there are other options that don’t involve 20-page agreements and huge penalties. What to look for in your sustainability solutions provider:

• Brief, plain language agreements
• Easy termination
• Desire to maintain a long-term relationship with your community
• Works to keep you at the forefront of energy efficiency and reducing your carbon footprint
• An investment that is considered “off balance sheet financing” (FASB/GASB Qualified), so there is no liability you incur on your balance sheet
• Remotely monitors all technology wirelessly so any variance is addressed before a failure can occur
• Pays for the maintenance of all technology they install for its useful life so your maintenance budget can be reduced significantly or redirected to other areas of need
PPA chart

Let NCG help you be an energy hero.

Contact Newman Consulting Group