On-site Installation PPA

The buyer uses available rooftop or adjacent land to operations to build a solar or, less often, wind facility. It is uncommon for on-site wind as wind resource is highly location specific.


Procured vs. Installed

Option 1
Procured


NO CAPITAL OUTLAY

Purchase the output without having to draw capital from operations.

NO MAINTENANCE

Never worry about warranties, repairs, or replacement parts.

SCALE

Utilize low pricing achieved through economies of scale on cheap land.

Option 2
Installed


CAPITAL REQUIREMENT

Solar projects are capital intensive and require access to cheap capital.

POSSIBLE HEADACHES

Especially when installations are across wide geographic spans and many roofs.

PIECEMEAL DEVELOPMENT

Rooftop installations take more time and cost more money.


Cost Breakdown

cost-breakdown-on-site-ppa-v3.png

Source: National Renewable Energy Laboratory (NREL) U.S. Solar Photovoltaic System Cost Benchmark: Q1 2018
Note: Prices converted from USD to CAD.

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