First US Finance LLC - PPA for Solar Project Finance

A Power Purchase Agreement is a great way for a company or non-profit organization to pay a controlled rate for power over a 20 or 25 year period. In many cases, the PPA electric rate is significantly discounted compared to the utility rate for the same energy. The company, also known as offtaker or host, only pays for the power they use as long as they meet the predetermined minimum. The PPA can be of particular benefit to organizations which do not qualify for the investment tax credit like non-profit groups because the lender shares the tax credit and depreciation savings in the form of a lower electricity rate.