A solar Power Purchase Agreement “PPA” is a financing arrangement that allows a nonprofit or
Association of Apartment Owners (AOAO) to purchase solar electricity with no upfront capital
cost. Since the nonprofit or AOAO is unable to utilize the tax incentives, the most affordable
solution is a PPA. To achieve this, a “Host” organization provides unused rooftop, land, or
parking lot space as the location for a solar installation. The PPA provider pays for the cost of
the solar installation and assumes all responsibility for ownership, operation, and maintenance
for the entire term of the PPA. As the host organization, you enter into an agreement to
purchase the solar electricity produced by the system at a predetermined discount to the
monthly published utility rate per kilowatt-hour, the same unit of measurement on your standard
utility bill. The typical PPA discount is 15% to 30%.
A well-structured PPA allows you to reduce electricity costs immediately and realize increased
savings over time as grid electricity prices rise. Once the PPA contract period expires (typically
after 20 – 25 years), you can purchase the system at fair market value, extend the PPA, or have
the solar installation removed.
Pacific Energy Capital (PEC) is the leading PPA provider in Hawaii. We are locally owned and
operated and work with only the most experienced and reputable solar installers. We have
funded over 11 Megawatts at about 60 locations in Hawaii and are committed to serving the
solar financing needs of nonprofits and AOAO’s.
• No Capital Investment.
• Reduce Operating Costs from Day One.
• Provides immediate electricity savings
• Offers production monitoring and metering by experts
• PPA provider responsible for repairs, operations, and maintenance
• Option to purchase the solar system at fair market value
• Supports Hawaii renewable energy goals
• Supports local businesses and jobs