By: Ryan Miller
Renewable energy is an attractive tool that businesses can use to offset rising energy costs. What makes renewable energy so attractive are the Federal and State incentives that cover over 30% of the costs to install the system. An investment today in a Solar Garden Roof creates a path of energy independence where your rooftop is producing the power necessary to run your building, instead of the local power plant.
So how does a non-taxable entity like a non-profit organization (NPO) take advantage of the plethora of incentives to produce energy for their own building? Fortunately there is an investment option tailored for NPO's called a Power Purchase Agreement (PPA). PPA's are used in situations where a site host does not desire to outlay the capital required to purchase a system, or is not able to take advantage of the tax benefits available due to being a non-tax paying entity. Through the PPA, the NPO will have no upfront investment nor carry any of the ongoing operations and maintenance obligations. The NPO will then enter into an agreement to purchase the energy produced at a rate below current energy rates.
With this setup, the NPO will make uniform, monthly payments at a reduced cost when compared to the current energy bill. After a set period of time, the NPO can decide to purchase the array from the investors at an agreed upon price. From there the system is paid off and the NPO is enjoying free energy, thanks to the SUN!
Green Roof Service/Green Roof Technology works with NPOs and investors to tailor the right PPA for an investment in a Solar Garden Roof.