Going off the grid (at a big discount)

The costs for purchasing and installing solar panels can be out of reach for many businesses. 

But there’s a less expensive option available: Solar Power Purchaser Agreements (SPPAs).

How it works is a facility signs a contract with a solar company to install solar panels on its property.

(While solar is gaining ground in the energy market, solar firms are still desperate for available land.)

Facilities that agree to an SPPA see three big benefits:

• Reduced energy costs. The facility pays for the electricity that’s generated from the panels. But rates are typically fixed, protecting facilities from rate spikes.

• Less reliance on fossil fuels. Renewables take a big bite out of greenhouse gas emissions along the whole supply chain.

• No or low up front capital costs. Solar firms own, install and maintain the panels. They also typically pay for the engineering studies and permit costs.

SPPAs not legal in all states

For now, SPPAs are illegal in 23 states due to utility-friendly regs. But that may be changing.

Last year, the Iowa Supreme Court ruled a solar firm that set up panels at a city works building didn’t violate state law.

Bottom line: Companies that have the available land and are looking for ways to cut energy costs, looking into an SPPA can’t hurt.

Bonus: You’re helping the environment which is something customers and clients want from the businesses they support.