Power Purchase Agreement (PPA) Review
Does your PPA hold up to scrutiny?
Power-purchase agreement's (PPAs) are designed to produce positive cash flow for the host organization. We've found that for the purchaser, realizing positive cash flow is often dependent on assumptions built into the PPA forecasts, including technical degradation of the equipment, utility rate estimates, utility cost escalation rates, and others. It is fairly straightforward and relatively low cost to check these assumptions and verify that the PPA will likely produce positive cash flow. As a 3rd party evaluator, we can provide an expert review of your PPA, and give you the confidence to make this significant investment. Remember, the individuals selling the renewable energy installation have a vested interest in making the numbers look favorable. Many reputable installers will be very accurate. Others are not.