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Solar Power Purchase Agreement

Gem Energy’s Solar Power Purchase Agreement

Firstly, and most importantly, installing solar panels under the Solar Power Purchase Agreement has no upfront costs and offers immediate guaranteed savings. With a 100% cash flow positive investment risks are removed and there are insurances and maintenance agreements in place to ensure this.

A Solar Power Purchase Agreement (PPA) is an arrangement based on purchasing the electricity generated by the solar power instead of purchasing electricity from the power grid. It does not require you to leave your current power supplier and it will not affect the quality or stability of the power supplied to the property.

Essentially, all you are doing is allowing us to install solar panels on your roof for free and retail you the energy produced from the solar. How is this possible? Well, it is simply cheaper to produce energy from solar power than it is to buy it from the grid.

In times of particularly high electricity demand or in times of bad weather, any additional electricity requirements are taken from the electricity grid to supplement the shortfall in electricity production from the solar panels. Outside of daylight hours when the solar system is dormant, any electricity used at the premises is taken from the energy network as it is now. Each unit of electricity is classified as kWh or kilowatt hour.

Gem Energy will install monitoring software much like the meter currently installed by the power company that will record the kWh of electricity used from the solar panels. Every kWh of electricity supplied from the solar power will directly reduce the amount of kWh billed by your current power company by a directly proportionate amount.

Let’s look at an example:

COMPANY A currently uses an average of 200kWh per day and use most of their power during the day. They are currently billed $0.30 per kWh or otherwise known as 30c/kwh. Currently, they would be invoiced $60 for the energy they have used in this day ($0.30 x 200kWh).

Gem Energy have installed a 25kWP solar system at the property which will supply and off-set 100kWh of electricity usage per day. This 100kWh will be billed to the customer by Gem Energy at a negotiated rate of $0.20 per kWh and the remaining 100kWh will be supplied as normal by the power company at 30c/kwh.

COMPANY A will receive an invoice from the power company for $30 for the energy they have used from the grid and will also receive an invoice from Gem Energy for $20 for the solar energy they have used for a total invoice of $45. This represents a saving for COMPANY A of $15 in this one day.

This is how it would look over a month.

Solar PPA Example

Solar PPA Example 2

There are absolutely no upfront costs and our customer is now more than $3,000 a year better off.

To find out if your business could benefit from a Solar PPA please fill in your details below and one of our commercial consultants will be in touch.

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