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POWER PURCHASE AGREEMENTS (PPA's)


Urban Grid hopes to building lasting relationships with customers interested in receiving a reduced electric rate, below market rate, through a long-term Power Purchase Agreement (PPA) structure. Urban Grid prides themselves in developing clear agreements for the customer, developing trust and credibility as part of a long-term relationship.

For the host customer it's easy. The host of the solar PV array agrees to lease their roof to Urban Grid in return for the opportunity to purchase the electricity generated from the array.

Urban Grid functions as the owner of the solar PV array and the installer. In an effort to offer clean electricity generated from PV at a competitive price, Urban Grid takes advantage of bulk discounts from manufacturers and available state incentives. In addition, by being able to utilize the electricity on-site, the standard distribution charges do not apply.

Urban Grid performs the site analysis, system design with the latest PV technologies to optimize production, installation and utility interconnection. In addition, Urban Grid retains ownership of the array, Renewable Energy Credits (RECs), and handles the continuous monitoring, verification, and ongoing systems operations and maintenance.

Urban Grid makes it easy to utilize the best part of clean solar photovoltaic energy – a reduced bill to the utility company. However, PPAs have the added benefit of immediate cost savings and a 'greener' image without having to pay for a photovoltaic system.
benefits


Urban Grid identifies sites with high electricity usage, plenty of available roof space, and customers who are interested in long-term electric rates. These factors combined can identify ideal sites for PPAs. Key benefits for customers include:

  • Zero outlay of capital for equipment or installation - Urban Grid can develop either roof or ground mounted solar PV arrays at no cost to the host customer. Urban Grid owns, operates and maintains the PV array for the life of the contract.
  • Predictability - The host customer purchases a portion of their electrical demand from Urban Grid at a lowered electric rate for up to 15 or 20 years.
  • Effective energy price hedge against rising costs - The lowered rate will not be subject to significant price increases expected in the future for distributed electricity. Either a fixed rate or a slight price escalator (1% to 5%) apply to host customer's rate.
  • Meet sustainability goals - Create a positive public image and exceed sustainability goals by purchasing renewable energy and hosting a large solar array.
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    ideal candidates


    A host customer who has the following:

  • Owns their roof
  • Has >10,000 square feet of open roof space
  • Unobstructed sunlight
  • 10 years of additional life left on the roof
  • Additional weight bearing capacity (approx 2.5 lbs per square foot depending on installation)
  • High peak demand charges
  • Over 100,000 kilowatt hours (kWh) used annually
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