PPA & Behind-the-Meter Information
PPA For Businesses
A Power Purchase Agreement (PPA) is a financial arrangement where a solar provider installs a solar energy system at a business’s facility at no upfront cost to the business. Instead, the business agrees to purchase the solar-generated electricity at a predetermined rate over a set term, often ranging from 10 to 20 years.
- No Upfront Capital: Solar provider covers all equipment, installation, and approval costs.
- Predictable Energy Costs: The PPA rate is fixed or predictable, insulating the business from utility price volatility.
- No Maintenance Responsibilities: The solar provider handles all repairs, maintenance, and system performance monitoring.
- Potential Ownership Transition: Shorter-term PPAs can allow the business to eventually own the solar asset, turning energy expenses into a long-term investment.
Benefits of 'Behind-the-Meter' Solar
Behind-the-meter solar systems generate power directly at the customer’s facility, allowing the business to use the electricity on-site before it hits the utility grid. In regions where transmission, distribution, and delivery fees are on the rise (Alberta) –reducing reliance on the grid can result in significant cost savings.
- Avoiding High Delivery Fees: On-site generation circumvents grid-based charges providing savings to the business.
- Greater Cost Certainty: Reduced reliance on the utility grid translates into more stable and predictable energy costs.
- Pathway to Energy Independence: Once a behind-the-meter system is in place, the business can explore battery storage solutions, minimizing dependence on the grid and future price uncertainties.
Solar Power Purchase Agreement (PPA) Structure
How a PPA Agreement Works
Your Business:
- Signs a long-term Power Purchase Agreement (PPA) typically ranging from 10 to 20 years.
- Shorter term (10–15 years) indicates intent to own array after the term:
- part of PPA rate pays off the array, similar to a house mortgage payment
- Longer term (20 years) intended to maximize reducing monthly utility costs.
- Shorter term (10–15 years) indicates intent to own array after the term:
- Pays no upfront costs,
- Assumes no responsibility for ongoing maintenance, repairs, or equipment replacement,
- Chooses to include the array’s environmental attributes in the agreement or not,
- Agrees to purchase all power generated by the array,
- if the system isn’t producing power, your business does not pay.
- Pays solar electricity bill just as it would a current utility payment.
onBuild Energy:
- Covers all costs, including installation, maintenance, and repairs.
- Owns, maintains, repairs, and ensures ongoing performance of the solar array throughout the PPA term.
- Bills the customer monthly for the actual power produced, mirroring standard utility billing practices.
No Upfront Costs
No Maintenance
Instant Savings
Utility Cost-Certainty
Corporate Sustainability
No costs associated with adding a solar system. Opportunity to own outright at end of term.
No maintenance required by your business since the system is not owned. Only purchase energy generated, so no risk of low performance.
See immediate savings by re-directing your business’ existing utility payments towards paying off solar, including savings over the expected life of the solar system.
Lock in low-energy costs and avoid future retail energy cost increases, growing transmission and distribution fees, and unnecessary local access fees and riders.
Use clean, renewable energy instead of energy generated with fossil fuels.
Ready to hear more about how PPAs can fit your business needs?
Let’s connect your business to the future of energy in Western Canada.