There is no doubt that the recent economic Ground Power Generator Review downturn has served as a catalyst for virtually every public and private entity to consider a solar energy system in order to reduce electricity costs. As a result, many have entered into power purchase agreements (PPAs) in order to finance the installation of rooftop solar modules.
Buyer beware. Under these agreements, it is the utility company that retrieves the federal tax deductions (30 percent annually over five years), accelerated solar panel depreciation (50 percent over the same five years) and the SRECs. Each time a solar electric system produces 1,000 kHz of electricity, a SREC is issued. These certificates can be traded for cash.
While the consortium can negotiate PPAs that traditionally reduce electricity costs by up to 25 percent on behalf of private building owners, this expert team also can provide municipalities with alternative equipment financing options. Through low-interest bonding, local and county governments can gain the upper hand in contractual negotiations with the utility company by tapping into this form of low-interest financing. This eliminates the long-term commitment and an even greater return on the investment.