Companies only pay for the energy they consume at a fixed rate per kWh.
This provides a clear future projection of real costs without the uncertainty of market price volatility. The reduction of 80% of solar projects' costs over the last 5 years has made PPA solutions very popular among companies that want to use their key capital just in critical parts of their operations.
Our PPA rates are lower than what companies pay to the utilities for energy supplied from the grid.
Younergy has a very strong technical background in solar projects.
Our demanding due diligence process with our Solar Partners who install the PV system makes sure that the design and execution of the projects are in compliance with the highest industry standards. This is critical for end-customers, as it guarantees a fully functional and well maintained installation. Our Solar Partners must provide turnkey solutions and take care of the entire administrative process, so that the end-customer can entirely focus on their core business.
Your company gets the benefit of lower energy prices, achieves a significant reduction in its carbon footprint, and compliance with on-site renewable generation targets, all without having to allocate any capital to the project. With our PPA’s, you are also able to lock in your energy tariff for the entire duration of the contract and are less exposed to energy price volatility. Younergy will own and operate the solar system and sell you the energy at cheaper rates than grid rates.
The table below further illustrates the differences between Younergy’s PPAs and other funding sources:
|Younergy||Utilities||Bank/Renting||Other funding sources|
|100% Investment||Yes||Not in all cases||No||Not in all cases|
|Consumption Contracts, pay what you use||Yes||No. Fixed monthly instalments||No||Most prefer fixed monthly fees|
|Dedicated customer service||Yes||Yes||No||Yes|
|Strong Technical Background||Yes||Mostly supported by subcontractors||No(very financial oriented)||Financially driven|
|Any size from 30kW to 4 MW||Yes||Most operate above 1 MW||Yes||Most operate above 300 kWp|
|Flexible contracts. Client decides terms.||Yes||No. Fixed terms||Limited to 7-8 years||No. Fixed terms|
|100% focus on solar for self-consumption||Yes||No. Both self-consumption and ground mounted||No||No. Both self-consumption and ground mounted|
Younergy will support you in fully understanding all the advantages our PPAs offer your company and your customers. Our onboarding programs will cover aspects such as project design requirements, legal clauses of a PPA, tax advantages for customers, performance guarantees, financial and technical due diligence steps, project turnkey payment terms and O&M requirements.
Younergy manages over 1500 solar plants in Europe already. If you want to learn more about how we can help your company transition to solar without having to make the investment, please contact us.Become a solar partner
Frequently Asked Questions
Who makes the full investment?
Younergy. We cover the project and building license costs. We buy the solar plant turnkey from our Solar Partner.
How long are the PPA contracts?
We provide companies with the flexibility to decide the length of the contract, from 10 to 25 years.
What happens at the end of the contract?
Younergy transfers the Solar plant to the customer. If the contract is 15 years, this means that at the end of the contract the user will receive a solar plant with at least 10 more years of operational life. The only cost the user will have from this moment onwards will be the maintenance and insurance costs.
As an end user, do we have to provide any guarantees when signing a PPA?
No. As part of our Due Diligence process we analyze the financial scoring of the user (if approved).
How does my company account for the PPA contract in our books?
A PPA is a service where Younergy will sell you the energy. It accounts as an ongoing cost and not as a debt. Our PPA contract includes a lease agreement for us to operate the plant on your building. At the end of the contract, we transfer the asset to your company fully amortized.
How do you monitor the production of the solar system and the energy our company consumes?
Younergy installs certified meters that monitor the production of the plant and the user´s consumption. These meters are much more effective than Inverter readings and have a tolerance of 0.5%.
What information do you require from our company to get an investment approved?
Historic financial statements, property information where the solar plant will be installed, electricity bills and energy usage load curves.