PPA’s for small commercial projects

PPA’s for small commercial projects ( < 200 kW) are hard to implement. Bigger makes (most) everything easier in the finance world and small projects often get overlooked.

Most PPA companies that raise tax equity and own projects have minimum fees they put in on the project that squeezes the EPC and/or Developer in order to give the customer a PPA rate that is lower than their current energy savings. They need to eat too, but these minimum fees could add up to a huge ppW adder on the project that sometimes breaks the deal.

Interest rates have a lot to do with the pricing of tax equity and currently the pricing of PPA’s which are measured broadly by Internal Rate of Return (“IRR”) is also high. As interest rates come down, the PPA pricing does to some degree. WattHub understands the requirements of active PPA companies and even offers small commercial PPA’s through out own tax equity fund. We have helped dozens of industry professionals (well to do accredited investors) get into their own PPA and avoid paying Uncle Sam. This speeds up the process of the PPA if the rep or EPC wants to take part in the transaction. Not all PPA’s cash flow well, based on the energy savings, but WattHub offers the analysis as a service and can turn your project into a long term cash flowing asset while providing huge tax credits and depreciation. Contact us today if you have a project you want to participate in as an investor, or if you need a project funded and want to see if it meets our internal fund requirements!