Institute
2010 Projected Energy Generation
280,597
kWh
Capacity Under Construction
616.44
kW
2011 Planned Capacity
13.5
mW
The PPA Model
The Centrality of Access to Capital
Solar capital costs are falling rapidly and are aligning with traditional energy. In 2009, solar material costs alone declined an astonishing 50% from 2008 price levels. Still, the upfront cost of photovoltaic technology remains higher than fossil fuel-powered plants and many potential commercial clients face challenges in financing solar power systems.
The Solar Financing Revolution
A Solar Power Purchase Agreement (SPPA) from D-SUN offers financial certainty and substantial savings over the uncertainties and price inflation anticipated from electric utility providers.
Under an SPPA, D-SUN develops, finances, constructs, and owns the PV array on the client’s property. The client pays D-SUN for the energy the panels produce at a rate below local utility rates. Typically, an SPPA covers a 20-25 year contract period.
In 2008, over 70% of non-residential installations utilized the SPPA model. The SPPA commercial market is growing rapidly and expected to reach $8 billion in 2013.
The Unique Advantage of Solar
Solar photovoltaic systems offers power generation at uniquely low operations, monitoring, and maintenance costs. Typical warrantied life is 20-25 years, and estimated useful life is 40 years.
For a mid-sized commercial office building, savings over the lifetime of a solar system are often in the hundreds of thousands of dollars. The solar PPA uniquely satisfies both the social and political demands for alternative energy sources and the market demands for lower energy costs.
