Industry Comparisons

PPAs vs Direct Ownership Analysis

Detailed comparison of Power Purchase Agreements versus direct ownership for commercial solar projects.

Promise Energy Team2024-02-086 min read

Financial Comparison

Ownership provides 20-30% better lifetime returns but requires capital. PPAs offer immediate savings with no investment but lower total benefits.

Risk Analysis

Ownership assumes performance and maintenance risk but captures all benefits. PPAs transfer risk to developer but share savings.

Decision Framework

Consider tax appetite, capital availability, risk tolerance, and facility ownership. Ownership best for long-term facility owners with tax liability.

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Written by

Promise Energy Team

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