Today, money for non-profit organizations is very hard to find. Various projects need funding more than ever, as they are being squeezed from all sides with reduced endowments, income, and pledges, and increased costs for operations, facilities, and personnel. That’s where solar energy can actually help.
Decreased Energy Costs
The cost of traditional energy is constantly increasing, and is expected to continue to rise dramatically over the next three to five years. Utilities are becoming more sophisticated, creating multiple layers of charges and usage fees based on quantity, time, season, and any other factor which could cause variance.
By installing solar, a non-profit organization can lock in rates for many years, as the sun’s price will always stay the same. This protection from energy increases allows your organization to operate within clearly defined rate structures – less than utility rates today and far less in the future because of large (3-6%) expected utility rate increases.
Demonstrate Commitment to the Well-Being of Your Community
By installing solar energy panels, your organization can show its dedication to making all aspects of your community a better place. Taking your own steps to maximize donations and minimize your impact on the earth will improve your brand perception and increase interest in your cause.
The Third-Party PPA (Purchase Power Agreement)
The Power Purchase Agreement (PPA) is new method of financing in the US and it has become very useful for financing solar PV systems in commercial and non-profit organizations. The PPA is designed as a long-term contract between a customer (the non-profit) and a third-party solar power developer and financier. The developer builds the solar system on the customer’s property and owns the system as their asset. They sell the power produced by the solar system to the customer. This allows the customer to use solar power and support the reduction of fossil fuels while avoiding any upfront costs.
The developer buys the solar system and obtains the federal, state, and utility incentives for the asset. There may also be performance guarantees for the power production. The customer benefits by a significant reduction in their electrical expenditures and with consistency of utility costs for that energy over a 15 or 20 year period.