For many people, the cost of a home solar photovoltaic (PV) electricity system might seem out of reach. But those same people are likely concerned about the high cost of their present electricity supply and possibly more concerned about its impact on the environment. RGS Energy offers a simple and extremely cost effective plan that allows homeowners to get clean, reliable PV power in their homes at a fixed cost and with no impact on the environment.
RGS Energy’s Power Purchase Agreement (PPA) provides all of the benefits of a home solar energy system at a low fixed cost.
No equipment purchase necessary
With a PPA, it is unnecessary for you to purchase the PV system equipment. In fact, it is unnecessary for you to purchase anything, including the installation of the system on your home. For qualified PPA participants, the cost of installation can be as low as $0. RGS will install the system, connect it, turn it on, and all you’ll do is pay your low monthly rate per kilowatt (kWh) used over the term of the PPA contract.
Low monthly payments
People who purchase their PV systems are the beneficiaries of federal and state incentives that substantially reduce the purchase and installation costs. As a PPA participant, you will get the benefit of those incentives and rebates even when you don’t buy the system. RGS will assume those benefits on your behalf and apply them to your overall contract terms. Your monthly bill will be reduced by a pro-rata percentage of the price less the incentives/rebate bonuses.
The federal incentive
The U.S. government is offering a 30 percent investment tax incentive off the purchase price of every residential and small business PV system in the country until December 31, 2016. If the retail cost of the system for your home is $15,000, the contract you sign will be for a system that costs $10,500. This reduces your monthly fee by 30 percent over the life of the contract. Even though you won’t own the system, you’ll receive the same financial benefit as people who do.
Many state governments are very invested in increasing the amount of PV power generated within their borders. Accordingly, they may offer additional in-state incentives such as zero state sales or use taxes (no taxes assigned to the value of either the system or its installation costs), and property tax exemptions (your property taxes won’t go up even after the PV system installation increases the value of your home).
Many states also offer rebates of a percentage off the purchase price of the system. RGS will pass these savings on to you, too, to lower your monthly fee even more.
Benefits of the PPA
- Fixed rate for two decades: Unlike any other commodity, a PPA will lock in the rate per kilowatt unit ($/kWh) for 20 years. The volume of your electricity consumption will never change your fixed rate per kWh. Compare that to the price per kWh of traditionally sourced electricity, which fluctuates wildly throughout each year.
- No maintenance or repair costs — ever: The RGS PPA covers 100 percent of the maintenance and repair costs for the life of the contract. Solar PV systems don’t have moving parts, so they don’t wear out like aspects of other utility systems. However, the panels are exposed to weather and climate, and the connections of the system to the home and the grid meter can fail. RGS will repair or replace any aspect of the system that fails, at no cost to the PPA participant. RGS also maintains insurance on the system to cover the cost of any damages that might occur. As a PPA participant, you need only make a call, and RGS will get your PV system back online as quickly as possible and at no cost to you.
Flexibility over time
Like so many people, you may find it necessary to sell the home on which the system is installed. No problem. RGS will work with the new homeowners to transfer the PPA to their name if they should choose to assume the contract. Alternatively, you would be offered the opportunity to prepay the balance of the agreement at a five percent discount. Or if you’ve been in the PPA for more than five years, you can purchase the system outright from RGS.
At the end of the 20-year term you can renew the agreement for five-year terms or for another 20-year term. You can upgrade to the newest PV technology for another term, purchase the system outright or simply have it removed from the property.
Predicting the future cost of goods or services is virtually impossible, which makes it very difficult to plan very far into the future. A PPA from RGS Energy gives you the opportunity to not just predict your electricity cost, but to fix your electricity cost per kWh for 20 years. And because RGS passes all the savings of a purchase on to the PPA participant, you gain all the financial incentives but none of the costs associated with ownership.
To find out if a Power Purchase Agreement is the right solution for you, visit www.rgsenergy.com.