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What is an appropriate PPA cost for a commercial installation

frasere2

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Joined
Mar 26, 2023
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SF

What is an appropriate PPA cost for a commercial installation​



I'm trying to determine the appropriate PPA terms for a solar PPA for commercial installations where a company may use the power, sell it to the companies' tenants, and/or supply power to the grid. Those are 3 different rates generally. What would one consider a good deal for the property owner in order to get them to choose a PPA vs buying it outright themselves? This is in California where average commercial rates are $.35-40 after all credits (the bills are horrendously complicated). I was thinking of offering something like:
  • a base amount of kwh of no cost electricity to the landlord,
  • with a set amount of 12-20 cents/kwh for any use of solar over the base
  • and we would manage the billing for them through a 3rd party for their tenants who would receive billing at 10-15% less than the current rate from the utility
We would pay for all of the equipment, installation, permits, etc, but would also retain any payments for feeding back into the grid. What should I change if anything to make this appealing to property owners? I could also offer a lease for the roof space instead. Thoughts?
 
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