Page 68 - North American Clean Energy May June 2015

investing in clean energy

Left: he project at the National Aquarium in
Baltimore, MD - after
Above: he project at the National Aquarium

in Baltimore, MD - before
Off-Site Solar

Tapping the inancial and environmental beneits

by Bryce Smith

What happens when an on-site solar project isn’t practical?
Advances in solar technology and a sharp decline in equipment costs have

transformed electricity customers from “price takers” to “price choosers.” On-site
solar customers receive electricity at a fixed, predictable price. Even as energy costs
rise over time, the price of solar power remains constant. Stable renewable energy

contracts hedge against electricity pricing hikes and allow customers to support the
construction of new, clean sources of power. Thousands of electricity customers have
taken control of their energy procurement with on-site renewable generation.
However, many organizations, including universities, municipalities, and

Expert Tax Advisory, Accounting, and businesses, simply don’t have sufficient rooftop or open space to host solar projects
large enough to make a significant impact on utility bills. Some organizations don’t
Business Strategy for Clean Energy Companies
own their facilities or they inhabit buildings that are shaded.
What’s needed is a development model designed to meet the needs of this

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underserved, mid-range market. With that in mind, one model rising in popularity is
off-site solar, sup-ported by a power purchase agreement (PPA).

How It Works

Like standard on-site solar PPAs, off-site arrangements enable customers to purchase
and own the physical energy produced by a PV system without the upfront cost
burden. Because PPA customers pay a fixed price for each kilowatt-hour produced
over a contract term—generally in the ballpark of 15-25 years—organizations receive

a hedge against rate increases, capturing both the economic and environmental
benefits of solar power. What’s truly groundbreaking is that when systems are built
off-site, developers are no longer constrained by property size or rooftop orientation.
Instead, developers can ensure each system is appropriately sized—typically in the

range of 2–50 MW—to meet a significant portion of the customer’s electricity needs.
Organizations otherwise left out of the solar market can now access solar systems
that benefit their bottom line without incurring any upfront costs.
PV AMERICA
BOOTH
Off-site PPAs in Action
205
In 2014, the National Aquarium in Baltimore entered into an off-site power purchase
www.rodmancpa.com

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