Power Purchase AgreementsInvestments that are risk-free and 100% cash flow positive.
First of all, installing solar panels under GEM Energy’s Solar Power Purchase Agreement (PPA) costs nothing upfront and guarantees immediate savings.
Our Solar PPA is an arrangement based on purchasing the electricity generated by solar panels on your roof instead of buying electricity from the power grid. By putting into place insurances and maintenance agreements, we provide a risk-free, 100% cash flow positive investment. Entering into a Solar PPA 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 power 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 installs monitoring software, much like the meter currently installed by the power company, which records the kWh of electricity used from the solar panels.
Every kWh of electricity supplied from the solar power reduces the amount of kWh purchased from your current power company by a directly proportionate amount.
Example: How Power Purchase Agreements Work
COMPANY A currently uses an average of 200kWh per day and uses most of its power during daytime.
COMPANY A is billed $0.30 per kWh or otherwise known as 30c/kWh. Therefore, they would be invoiced $60 for the energy they have used on this day ($0.30 x 200kWh).
GEM Energy has installed a 25kWP solar system at COMPANY A’s property which will supply and offset 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. They 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 for this one day.
See how it would look over a whole month. There are absolutely no upfront costs and COMPANY A is now more than $3,000 a year better off.
What our customers say about us
Solar installers are a dime a dozen these days, but proper energy engineering contractors like yourselves are few and far between.Toby Murdoch
I would recommend GEM Energy to anyone looking for a Solar PV provider.Cameron Dean
The work was completed in conjunction with our business needs and everyone from GEM Energy involved with the installation was professional, competent and courteous to the YMCA staff and our patrons.Phil Sellwood