Under a PPA, you assign a solar developer the right to use your roof, or other areas on your property, and allow them to take over the role and responsibilities of solar system owner. Vanguard designs and constructs the solar array and delivers the system's energy output to you at a discounted price from your existing utility rate. This agreement allows you to receive discounted electricity as a monthly, consumption‐only operating expense.
After Vanguard has completed the solar installation,
it will form and manage a Special Purpose Entity (System Owner) that owns and operates the solar energy system. The System Owner sells the solar system's electricity to the Site Host.
The customer in control of the property where the solar system is installed. The Site Host buys the solar system's electricity from the System Owner.
15 – 20 years
The System Owner will be entitled to all federal investment tax credits, federal and state depreciation along with any other tax benefits, state rebates, solar renewable energy certificates (SRECs), and other environmental benefits.
The System Owner will own and operate the solar system at its sole cost and expense. All repair, maintenance, and replacement costs will be assumed by the System Owner.
Vanguard projects that the solar system output will degrade at approximately 0.5% per year.
The Site Host will be required to purchase 100% of the solar system's annual energy production delivered to a "Point of Delivery," as defined in the PPA.
The Site Host will be entitled to all the "net metering" benefits of any excess solar energy exported to the utility's power grid.
The Site Host has the right to terminate the PPA at anytime with 90 days written notice. Upon termination, the Site Host is required to pay the early termination amount provided in the PPA
The Site Host may purchase the solar system at the conclusion of the Agreement at an attractive buyout amount.
The Site Host will be required to maintain liability insurance in an amount to be agreed upon.
The Site Host must be capable of demonstrating that it has sufficient financial wherewithal to enter into a long‐term Power Purchase Agreement.
Solar PPAs are contracts between energy providers (the "System Owners") and customers who agree to purchase solar energy at a fixed, reduced rate for approximately 15 to 20 years. A solar electric system is installed on the rooftop or property of an electrical consumer (the "Site Host"). The Site Host bears no costs or risks associated with the solar array—it simply receives the benefits of discounted electrical energy on a pay-as-consumed basis as defined in the PPAs.
Achieve solar savings without the capital expenditure
20‐30% discount off of utility rates of $0.15+/kWh
Vanguard will build, own, operate, and maintain your solar energy system
Secure, long‐term, highly predictable source of energy
Convert a cost center, like your roof, or other areas on your property, into an earning asset
Preserve capital lines and management focus for core business investments and leave operations of a power plant to a third party solar expert
Enhance your public reputation as an environmental steward benefiting the environment
Vanguard is uniquely and strategically structured to install solar energy systems and manage Power Purchase Agreements through its asset manager, Vanguard Energy Capital. E-mail us at info@vanguardenergypartners.com to learn more.
CORPORATE OFFICE: One Commerce Street, Branchburg, NJ 08876 USAPh: 908.534.1302Fx: 908.534.1304
BRANCHBURG, NJBALTIMORE, MD
BOSTON, MA
DENVER, CO
DURHAM, NC
NEW YORK, NY
STUART, FL
MISSISSAUGA, ON
Copyright © 2012 Vanguard Energy Partners, LLC. All rights reserved.
