A power purchase agreement locks in electricity rates

A power purchase agreement locks in electricity ratesThe price for electricity has been volatile for decades as utility systems have evolved and new electricity generation technologies have been developed. Coal was the first mass source of energy to power electricity generating plants, and much of today’s electricity is still generated by burning coal. In the past few decades, other energy sources have been implemented to replace coal, such as hydroelectric and nuclear power, as well as natural gas.

The development of these new energy sources required massive financial investments for construction and maintenance, and all of these costs are eventually borne by consumers. When things go awry and expenses go up, so does the price of the electricity produced.

In many ways, gasoline and electricity are very similar. Easy access to both provides America with an exceptionally high standard of living, but we pay for that high standard. On one crucial point, however, gasoline and electricity consumption differ greatly: Every time you fill your gas tank, you are actively engaged in tracking your cost for that energy. Not so with electricity.

Because there is no pump on your electric supply, you’re usually not aware of the volume of electricity you have consumed until your bill arrives. There is no way for you to know in advance what your electricity use will cost you.

Solar energy, generated by a solar photovoltaic (PV) electric system, changes all that.

“Power Purchase Agreements” lock in your electric rate

Through a “Power Purchase Agreement” with RGS Energy, you can know how much you will pay monthly for your electricity and you can lock in your rate for 20 years.

If you’ve always wanted to use solar power for electricity but didn’t want to buy a home or business-based PV system, a PPA provides that opportunity. Like other utility services, RGS will hook up your home to RGS-installed solar panels so you get access to PV-generated electricity. Through the PPA, you pay RGS only for the power you consume.

An RGS PPA offers benefits to consumers that are not available elsewhere.

1. There may be no installation costs: Qualified home and business owners can have their end of the service connected for no cost. RGS will cover all the installation and connection fees. You start saving money the moment the system turns on.

2. Pay a low fixed monthly rate: You pay a low monthly rate for your PV electricity and that rate can be fixed for 20 years. Since there is no push and pull of supply and demand for solar radiance — it isn’t owned or sold like coal or natural gas — there are no fluctuations in its price. Once a PV system is installed, there are virtually no costs. The energy source — the sun — simply produces electricity through the system, and the reliability of the sun gives RGS the ability to guarantee that you will have solar-powered electricity for the next 20 years at one fixed rate. The rate covers all maintenance costs, as well (although there aren’t many of those either).

3. RGS offers flexible payment terms so you only pay what you can afford to pay: You can be certain that natural and man-made disasters will continue to happen. You can also be certain that the sun will shine every day. And with an RGS PPA, you can be certain about the amount of your electricity bill this month and every month for the next 20 years.

To find out if power purchase agreements are available in your state, visit www.rgsenergy.com.

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