Posted by: tristar3research | April 1, 2009

Path to Alternative Energy: Power Purchasing Agreements

Yes, the utility model for solar. Makes sense as Jigar Shah of SunEdison has proven. KUDOS!

When discussing solar power these days, the name Jigar Shah comes up often. The founder and former CEO of SunEdison, the nation’s largest solar power provider, Shah formulated a new way to finance the construction and operation of solar equipment, from rooftop arrays to larger ground-based solar farms. “SunEdison customers pay nothing for their solar systems,” writes Michael Behar in a profile of Shah for OnEarth magazine. “Instead they sign what is known as a power-purchasing agreement, or PPA,” an agreement to buy the electricity the system produces at a set price for at least 10 years. Common in the coal, oil, nuclear, and natural gas industries, the PPA is new to solar and has attracted customers including the Kohl’s department store chain, which now has SunEdison arrays on the rooftops of 67 stores.


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