Installation Owned by the Building
BEI is happy to assist real estate developers to design, finance, and install solar installations on existing properties. Through the use of the Investment Tax Credit, along with utilizing existing state rebate and grant programs, BEI will help owners navigate the complicated tax structures. Such structures allow a professionally designed solar system to be installed on the building, allowing the owner to create their own power as well as gain various incentives including accelerated depreciation, income tax credits, and Renewable Energy Credits.
BEI as an Independent Power Producer
Another attractive structure to building owners is to have a company such as BEI own and operate the solar installation. Such an arrangement allows the building to gain the benefit of the solar installation, without bearing the risks and maintenance associated with a typical installation. Under this structure, BEI, operating as an independent power producer, finances, owns and maintains the system and sells the electricity produced by the system to the building through a Solar Power Purchase Agreement (SPPA). When working with an independent power producer, the owner of the building forgoes the upfront capital needed to finance such an installation and only pays for the power generated by the solar installation.
Solar Power Purchase Agreements (SPPA)
Using a SPPA structure, the building owner does not own the solar installation, and instead signs an agreement with BEI to purchase the power generated by the installation at a predetermined price. BEI studies the building's existing utility bill and offers competitive rates that are typically at or below the customer's utility cost. Contracts typically extend 15-25 years, and allow building owners to lock in future utility rates, creating a hedge against future rising utility bills.
Once the PPA has been signed, BEI accesses its existing network of solar integrators that install the solar array on the building. BEI manages the procurement and construction management of the system to ensure the system is designed and installed on the building to provide the maximum electrical output for the building. Under this structure, the building owner benefits from a professionally installed and managed solar installation, at a fraction of the cost of owning the system outright.
The cost of a photovoltaic system is often seen as cost prohibitive. As such, BEI navigates the various federal and state tax incentives provided for solar installations, in order to help lower the cost per kWh for the customer. BEI will also utilize many existing state rebate and grant programs that help to decrease the cost of the solar power generating facility, minimizing costs for the customer. BEI will navigate the various programs for the customer in order to provide lower energy costs for the building, while mitigating the risk of financing, owning, and operating the system for the building owner.
Once the system is placed in service, BEI will ensure the system is properly maintained, providing the building owner with the highest level of output. A well maintained system is a highly productive system, ensuring less reliance on the utility company and its escalating energy costs for the building owner.