Solar PPAs

Through a solar power purchase agreement (PPA), owners of land and buildings can gain the advantages of clean, renewable energy with no up-front capital investment. In a typical PPA, a company installs solar power systems at no cost. The property owner then buys energy at a negotiated rate from Vorp Energy, just like a monthly utility bill.

Under a PPA, Vorp Energy designs, builds, owns and operates the solar power system, receiving all tax benefits, installation incentives and operating costs. Since the equipment is completely owned and operated by Vorp Energy, the property owner has no up-front expenses, no maintenance expenses and no repair expenses.

Benefits

Electricity cost savings from fixed price of solar electricity

Only pay for solar electricity generated

No operating, maintenance or repair costs

No capital investment

Works best for:

– Private enterprises that want to increase renewable energy generation or compliance goals that cannot divert funds to these projects.

– Municipalities and school systems that lack the budget for major capital improvements but want to control long-term energy costs or meet renewable energy goals

Energy Savings Performance Contract

With an energy savings performance contract (ESPC), project costs are paid over time from the energy savings realized by the project, eliminating the need for an up-front capital investment. Under an ESPC, Vorp Energy installs solar or CHP equipment at no cost. The property owner then receives a monthly bill over a fixed period of time to pay for the equipment. Once the ESPC is paid off, you own the power system.

Benefits

Ownership of equipment at end of contract

Potentially lower energy costs during term of contract

Fixed monthly payments

No capital investment

Works best for:

– Private enterprises that own facilities with older, less-efficient energy systems that want to control energy costs.

– School systems and municipalities that want to pursue long-term energy savings but lack the up-front capital for a system purchase.

Purchase

Customers who want to receive an Investment Tax Credit, accelerated depreciation, and 100% of the power cost savings may prefer to own their energy system designed and built by Vorp.

Benefits

Investment Tax Credit

Accelerated depreciation

Reduced electricity costs

Retain all other incentives

Works best for:

– Private enterprises that have cash on hand and want to take advantage of tax breaks as well as energy savings

– Municipalities and school systems undertaking fully bonded new construction projects or fully bonded renovations of existing buildings.

Operating Lease

For customers with high credit scores, the operating lease yields higher project savings than a solar PPA through lower interest rates. Vorp Energy designs, builds and operates the energy system, and a bank puts up the capital and owns the system for 10 to 15 years.

Benefits

No capital expenses during lease term

Lower financing costs than a solar PPA

Option to own at the end of the term

Lease payment may be treated as an operating expense

Banks can monetize tax benefits and pass through as reduced lease payments

Works best for:

– Private enterprises with strong credit scores that want the most cost-effective approach to solar power development.

– School systems and municipalities with strong credit scores that want to assume ownership of a system over time.

Capital Lease

A capital lease provides loan financing with all the benefits of ownership: Investment Tax Credit, depreciation, solar incentives and 100% of the solar cost savings. Property owners who lease get the same benefits as those who own, with the costs for the solar power system paid out over time.

Benefits

100% of solar cost savings

Payback from Investment Tax Credit, solar incentives and accelerated depreciation

Capital expenses spread out over time

For municipal customers, option of tax-exempt lease

Works best for:

– Private enterprises that have cash on hand and want to take advantage of tax breaks as well as energy savings

– Municipalities and school systems undertaking fully bonded new construction projects or fully bonded renovations of existing buildings.

Who uses Vorp Solutions?

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