Energize NY Provides PACE Financing for a Solar Power Purchase Agreement (PPA)
Energize NY broke new ground again this month by committing to provide 20-year PACE financing for a roof-mounted 35 KwH photovoltaic solar installation that was acquired through a power purchase agreement (PPA). The PV solar system is located on the headquarters for the UA Local 21 Plumbers & Steamfitters Union in the City of Peekskill and was installed by American Solar Partners LLC, one of Energize NY’s Qualified Partners.
A power purchase agreement enables a property owner to acquire solar energy at a fixed cost with low or no upfront cost. Under the PPA with the Union, the developer is responsible for the cost of installing and maintaining the solar PV system during the term of the PPA and for providing electric power to the Union at a fixed cost.
The PPA structure paired with Energize NY (PACE) Finance makes the cost of going solar even lower for property owners who might not otherwise be able to take advantage of tax credits associated with solar installations. Energize NY PACE Finance enables a property owner to finance the long-term, fixed cost of solar-generated electricity under the PPA.
This is particularly transformative for not-for-profits that cannot benefit from available tax credits and thus have a higher cost of entry to acquire solar. With Energize NY Finance, not-for-profits can go solar, benefit from lower-cost PPA pricing for electricity and avoid the operating risks and expenses of owning and maintaining the PV solar system.