POWER Purchase Agreements

A Power Purchase Agreement (PPA) is a financing model that allows your business to enjoy the benefits of solar energy without the significant upfront investment. Huff Energy Solutions partners with trusted third-party PPA providers to offer this option to clients. As the contractor, we handle the design, installation, and maintenance of your solar system. Your business simply pays for the electricity produced at a lower rate than your current utility provider.

What is a SoLAr PPA?

A Solar PPA is an agreement where a third-party provider owns the solar energy system installed at your facility, and your business pays only for the electricity it produces—typically at a rate much lower than what you’re paying for grid power. Huff Energy Solutions acts as the full-service contractor, managing the entire process from system design to installation and maintenance, while the third-party PPA provider finances the project.

  • With a PPA, your business can switch to clean, renewable energy without any upfront investment. The third-party PPA provider covers the full cost of the solar system, while Huff Energy Solutions ensures quality design, installation, and ongoing maintenance.

  • From day one, you can expect to see savings on your energy bill. PPA rates can be significantly lower than your current utility rates for the energy produced by the solar system. This means predictable energy costs and long-term savings. An example of a PPA rate we secured for a client was 75% lower than their current utility rate!

  • PPAs often come with an agreed-upon escalation rate, which can vary based on the terms of the agreement. In some cases, the rates may even remain fixed over the life of the PPA. This structured approach to pricing is far more predictable than the unpredictable increases in utility rates, offering your business long-term financial stability and greater control over energy costs.

  • Switching to solar energy helps reduce your business’s carbon footprint and aligns with corporate sustainability goals, potentially enhancing your Environmental, Social, and Governance (ESG) ratings.

Huff Energy Solutions: Full-Service Contractor with PPA Partnerships

At Huff Energy Solutions, we specialize in managing the entire solar installation process, offering design-build services for systems financed through a third-party PPA provider. Our team works closely with these providers to deliver customized solar solutions tailored to your business's energy needs.

  1. Custom Solar System Design: We analyze your energy usage and facility needs to design a system that maximizes efficiency and savings.

  2. Expert Installation: Our in-house team ensures the installation is done right, on time, and with the highest quality standards.

  3. Ongoing Maintenance: Huff Energy Solutions provides long-term maintenance and system monitoring, ensuring optimal performance.

Why Choose a PPA for Your California Business?

For businesses in California, reducing operating costs is critical. With rising utility rates, a Power Purchase Agreement (PPA) offers an immediate way to lower your energy expenses without any upfront investment. Huff Energy Solutions partners with trusted third-party PPA providers to bring solar energy to your business, ensuring your system is optimized for maximum savings and efficiency.

  • Utility Rates vs. Solar PPA Rates: PPA rates can be significantly lower than utility rates, leading to instant savings. By locking in a low PPA rate, your business reduces its electricity costs while avoiding the financial risks associated with fluctuating utility rates.

  • No CapEx and Immediate Savings: One of the key benefits of a PPA is that it allows your business to go solar without any capital expenditure. Instead, you only pay for the electricity generated by the solar system, typically at a much lower rate than what you pay your utility provider.

This means your business can lower its operating costs, improve financial predictability, and reinvest those savings into other areas of growth.

Case Study: Cost Savings with a 3.0 MW Solar PPA

Consider a business that consumes energy at a utility rate of $0.30 per kWh. We help the client install a 3.0 MW ground-mounted solar system through a Power Purchase Agreement (PPA), where the PPA rate we secure is 75% lower than their current utility rate.

  • System Size: 3.0 MW

  • Utility Rate: $0.30 per kWh

  • PPA Rate: $0.075 per kWh (75% lower than the utility rate)

  • Annual Energy Production: 4,730,400 kWh (based on average solar conditions)

Annual Cost Comparison:

  • Utility Costs: Without a PPA, the business would pay approximately $1,419,120 per year for electricity.

  • PPA Costs: With the PPA, the business pays around $354,780 per year for the same amount of energy.

Annual Savings:

This results in an annual savings of $1,064,340! A substantial reduction in operating costs without any upfront investment.

Let’s Work Together

Our team is here to guide you through the process. Whether you’re new to solar or seeking ways to optimize your current energy costs, Huff Energy Solutions can connect you with a trusted PPA provider and deliver a tailored, turnkey solar solution. Contact Us Today to learn how a solar PPA can benefit your business, helping you achieve energy independence with zero upfront investment.