Are You Stuck in a Bad PPA?
Are you unhappy with your existing solar installation? You’re not alone. We get calls every week from solar power users who report their solar is too expensive. Others complain about underperformance and the cost or complexity of managing their solar facilities. And for some, the passing of incentives make ownership less attractive. Let’s take a look at these underlying problems and one easy solution.
Stuck in a Bad PPA: Expensive Financing
Leases and PPAs (Power Purchase Agreements) are the most common forms of financing for Solar. Many of these contracts were written with low initial rates but high “escalator” or inflation clauses, which solar salespeople justified by past expectations of high energy inflation. In fact, the US Energy Information Agency reports that electricity price inflation has been low over the last decade, and is forecast to fall slightly through 2022.
We’ve seen PPAs that charge 25-50% more than utility rates; others that will command an even higher premium after their 10 years of cumulative contracted price increases. If your solar lease or PPA has an escalator above 2%, or if you are paying as much as your utility’s commercial rates, you’re probably paying too much.
We’re capitalized to reduce the cost of solar financing so let’s explore solutions.
Expensive, Complex Ownership
Solar was supposed to be as easy as utility electricity. You run your business, solar powers it. But then the panels get dirty. Or your monitoring interconnection fails. Or a squirrel chews through your wiring, shutting down your solar array and creating a dangerous fire risk. Or a few panels delaminate, the warranty enforcement is a hassle and the repair labor is not covered. Or the inverter shuts down or fails – as all inverters will after 10-15 years – and you face a $100,000 replacement bill. Solar has become an expensive distraction from your core business. We can help.
Past the incentives?
Many solar owners took advantage of cash grants, tax credits and other incentives to reduce their cost of purchasing or financing solar. Most of those incentives expired or were consumed within 5 years of installation, thus increasing the cost of ownership. Check the date of your installation… chances are if your system was installed prior to 2015, your after-tax cost of ownership has gone up by 30% or more, further eliminating much of the rationale for ownership. We buy many of our solar assets from solar developers and other solar asset owners who have crossed their 5-year threshold, and who need cash, or are not as well-positioned as we are to operate, maintain and manage a varied portfolio of solar installations.
More Cash, Fewer Headaches
Our core business is owning and operating solar assets. Since 2007, Helio Micro Utility and its affiliates have developed, financed, installed, owned and operated thousands of residential and commercial solar projects. We have a dedicated Network Operations Center that monitors performance and dispatches our certified technicians for preventative maintenance and reactive repair. Your headaches are our business.
If you are stuck in a bad PPA or lease, or if you are frustrated by the solar facility you own, we’ll consider buying it from you for cash or provide an affordable, reasonable form of financing convenient for you. You get cash and focus on your business. We invest and focus on ours. Everyone wins. Contact us today to explore solutions.