OUTRIGHT PURCHASE
- Customer secures financing;
- Customer takes tax credit;
- Customer sells Solar Renewable Energy Certificates (S-REC) and receives Money or Receives Performance Based Incentive (PBI)
- Customer pays for Operation and Maintenance (O & M)
- Conergy facilitates deal components.
LEASE AGREEMENT
- 7-10 yr contract for fixed payments below current electricity costs;
- Buyout provision at lease-end;
- Customer sells Solar Renewable Energy Certificates (S-REC) and receives Money or Receives Performance Based Incentive (PBI)
- Finance company usually takes tax credit;
- Customer pays for Operation and Maintenance (O & M)
- Conergy facilitates deal components.
Power Purchase Agreement (PPA)
- Customer contracts to pay fixed/known escalation rate for electricity (usually at or below current energy costs);
- Customer and host are often, but not always, the same;
- A 3rd party, e.g. abank or insurance company, owns the plant;
- A 3rd party receives Solar Renewable Energy Certificates (S-REC) and receives Money or Receives Performance Based Incentive (PBI)
- A 3rd party pays for Operation and Maintenance (O & M)
- A 3rd party receives tax credit.
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