Solar Power Purchase Agreements (PPA)

What is a Power Purchase Agreement (PPA)?

  • A customer subscribes to a Nexamp solar array.
  • The solar array feeds clean electricity that is either consumed by the customer or fed directly into the grid.
  • The electricity or the energy credits generated are sold at a discount, generating savings and protecting the customer against commodity price volatility.

With a Power Purchase Agreement, solar arrays are installed on or near a customer’s property, and the electricity generated is consumed either by the customer, or by the local utility. Under a PPA, the customer will pay the system owner each month for the electricity generated at a reduced price. The system owner finances the installation of the solar arrays and performs ongoing maintenance.

Onsite PPA

If the solar facility is located on the customer’s premises, they would typically enter into an onsite solar PPA. In this agreement, we install, own, and operate the system. The power generated directly offsets electricity that would otherwise be drawn from the grid.

Offsite PPA

When projects are located offsite, such as a Nexamp Community Solar farm, customers sign an Offsite solar PPA. Under this program, net metering credits are allocated to the customer’s bill at a guaranteed discount, allowing customers to pay a reduced price for electricity at their property or office, saving money year after year.

Benefits of a Power Purchase Agreement
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Electricity cost reductions
No upfront capital investment
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Long-term cost stability and predictability
Solar Panel
Directly supports the deployment of new renewables on the grid
Clear commitment to clean energy transition

Success Stories

Albany Medical Center
Albany Medical Center
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City of Worcester
City of Worcester
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In the case of an onsite, behind the meter solar PPA, the energy generated by the solar array is consumed directly by the customer.

In an offsite solar PPA, such as a community solar project, the energy credits generated from the solar farm are applied against the bills you receive from your utility to offset your costs.

A typical solar PPA has a term length of 15-20 years. This allows Nexamp to obtain, finance, build, and eventually operate the project.

While this is a long-term agreement, Nexamp is obligated to find a replacement entity in the case of termination. We have years of experience developing creative solutions to address customers’ contractual concerns, and stand at the ready to develop a solution that works for you.

While many community solar programs do not allow for the transfer of RECs to the customer, there are several select markets where project RECs can be passed along. In addition, Nexamp has developed a REC bundling product whereby we can seamlessly procure and retire Green-E Certified RECs to match the volume of community solar credits being delivered. For onsite PPAs, there is an option for the customer to retain the project RECs.

Nexamp has been offering solar Power Purchase Agreements and other offtake products since 2012. We have a long history of working with customers, from Walmart and T-Mobile to small commercial and governmental entities.

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