Power Purchase Agreements (PPAs) are a widely available method to finance distributed energy generation projects such as rooftop solar panels. These third-party agreements are legal in West Virginia and 28 states, along with Washington DC, and Puerto Rico. Read below to learn how PPAs work, who can use them, why they benefit customers, and how they can benefit all West Virginians. DOWNLOAD A PPA INFO SHEET.
How PPAs work
A tax-paying third-party developer installs, owns, and operates a distributed energy system on a customer’s property
Customer purchases the system’s electric output at a fixed rate – generally lower than that of the local electric utility – for a predetermined time period, usually 15-25 years
Eligible energy resources include but are not limited to solar, wind, run-of-river hydropower, geothermal, biomass, natural gas, and combined heat/power (CHP)
Who can utilize a PPA
Commercial businesses and manufacturers
Municipalities and governments
Tax-exempt entities like schools, churches, hospitals, and nonprofits
Farms
Homeowners
How PPAs Benefit customers
PPAs allow customers to benefit from distributed energy with low to zero upfront cost while enabling electric bill savings from day one
PPAs allow customers to lock in their energy rates, so they can stabilize monthly budget expenditures and protect themselves against utility rate increases
PPAs allow tax-exempt customers to benefit from tax credits through the project’s developer
How PPAs Benefit west Virginia
Broaden access to affordable energy
States that allow third-party PPAs account for 93% of the increase in American solar capacity since 2015.
Expand economic development
More than 800,000 American workers are employed in renewable energy industries
Create good local jobs in rapidly growing energy sectors
Attract employers to locate and invest in West Virginia