Empowering California Real Estate with Solar PPAs for Commercial Properties
March 8, 2024

Increasing Operational Sustainability Through A Solar PPA

Increasing Operational Sustainability Through A Solar PPA

California businesses face various challenges, but as many fight the states’ rising electricity rates, there is also increasing demand for them to adopt more sustainable practices. Environmental concerns continue to grow, prompting companies to align their operations with Environmental, Social, and Governance (ESG) initiatives that not only promote sustainability but also enhance their market standing.

Solar Power Purchase Agreements (PPAs) have emerged as a strategic alliance that offers a straight-forward path to sustainability without the burden of upfront costs. Achieve both financial and environmental goals seamlessly to future-proof your business against rising utility rates.

Understanding The Solar PPA

A Solar Power Purchase Agreement (PPA) is a unique financial agreement that provides businesses with the benefits locally generated of solar energy, without the upfront cost of retrofitting their facilities. Instead, solar providers such as Revel Energy install solar modules, racking and inverters at no initial cost.

Solar PPA Sustainability Benefits For California Businesses:

  • Reduced Carbon Footprint
  • Energy Cost Stability
  • Regulation Compliance
  • Enhance Corporate Image
  • No Upfront Cost

In return, that business purchases the electricity generated by those modules at a predetermined rate, designed to be lower than their utility rate to create savings. This model not only makes solar energy accessible, but also predictable in terms of costs by providing financial stability over the agreement’s duration.

Solar PPAs are particularly advantageous for businesses focused on sustainability credentials. By using clean energy generated on-site, companies can significantly reduce their carbon footprint and contribute positively to environmental conservation efforts. With the potential to earn valuable Renewable Energy Credits (RECs), solar PPA solutions have an array of benefits as they create capital through sustainability.

Financial and Environmental Synergy Through Sustainability

The Solar PPA represents a prime example of how environmental stewardship can align with financial pragmatism. As California businesses continue to grapple with rising energy costs, the solar PPA is an effective method to lock in electricity rates to avoid the volatility of the energy market. The long-term stability benefits of a PPA are crucial for long-term budgeting and financial planning as California chases lofty sustainability goals for the grid.

From an environmental perspective, solar PPAs have a profound impact by facilitating a substantial reduction in greenhouse gas emissions – directly contributing to a company’s sustainability objectives in a meaningful way. 

The transition to solar power through PPAs supports broader ESG goals by promoting sustainable operational practices. These efforts are recognized and often rewarded by stakeholders, including investors who are increasingly making funding decisions based on a company’s environmental, social, and governance activities.

Strengthening Operational Sustainability

Adopting solar power through a Power Purchase Agreement (PPA) not only aligns with financial and environmental goals but also significantly bolsters operational sustainability. By integrating solar energy into daily operations, businesses can reduce dependence on traditional power grids, decrease energy consumption costs, and minimize their environmental impact.

Real-world examples of businesses benefiting from solar PPAs are compelling. For instance, manufacturing facilities that have switched to solar PPAs report not only reduced energy bills but also enhanced operational efficiency due to the reliability and consistency of solar power supply.

This strategic use of space not only optimizes physical assets but also demonstrates a commitment to innovative, sustainable business practices. The visibility of solar panels can also serve as a tangible representation of a company’s dedication to sustainability, reinforcing its reputation as an environmental leader within the community and industry.

Solar PPAs Support Growing ESG Needs

Adopting solar Power Purchase Agreements (PPAs) is a strategic move that not only meets operational and financial objectives but also significantly boosts a company’s Environmental, Social, and Governance (ESG) profile. In the current business climate, where sustainability is increasingly at the forefront of corporate strategies, demonstrating a commitment to renewable energy can distinguish a company from its competitors.

By leveraging solar PPAs, companies can actively contribute to global sustainability goals, such as reducing carbon emissions and promoting renewable energy use. This proactive approach is highly regarded by stakeholders and can lead to enhanced investor interest, customer loyalty, and potentially, preferential treatment in regulatory environments.

As we move towards a more sustainable future, the decision to switch to solar energy through a PPA could be a pivotal step for your business, reflecting both an economic and ethical investment. We encourage all businesses to consider the long-term advantages of solar PPAs for their facilities and to reach out to our expert team for more detailed information or to schedule an obligation-free energy analysis for their property.

Revel Energy Commercial Solar Icon

Commercial grade rooftop solar is ideal for: manufacturing, warehousing, logistics, industrial, retail, hospitality buildings and more with over 10,000 sq. ft. rooftops.

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CARPORT SOLAR

Free standing carport solar generates added solar power for properties with limited rooftop space. Added benefits include shading and protection for employees vehicles.

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Crucial for reducing peak demand charges. Automated to supply electricity when your panels won’t. Energy storage is ideal for businesses that incur significant peak charges.

As the popularity of electric vehicles increase, so does the demand for on-site charging. This sustainable amenity has become a parking lot fixture for competitive employers.

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Client Testimonial: Kelemen Company

Corporate Business Park in Irvine, CA has created significant electricity cost savings through commercial solar installed across the 5-building business park.

Client Testimonial: Tice Gardner & Fujimoto LLP

See how this CPA firm saved on electricity and gained valuable tax credits through commercial solar that they used to keep cash in the businesses.

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