US Solar Energy Storage Agreement

What is a solar power purchase agreement (PPA)?

PPAs are an easy way for governments to “go solar” without needing to use their own upfront capital funds and without the responsibility of managing solar project construction, ownership, and operation. PPAs can be cash flow positive from day one (Better Buildings Finance Navigator: Power Purchase Agreement).

What is a solar & storage blueprint?

This Solar + Storage Blueprint includes a high-level overview of the process and benefits of two approaches to going solar – power purchase agreements (power purchase agreements—PPAs) and direct government ownership of projects.

Will Tesla supply a containerised battery energy storage system to intersect power?

The electric vehicle (EV) and energy tech company, due to announce its financial results next week on 23 July, will supply the containerised battery energy storage system (BESS) technology to Intersect Power through 2030. The deal was announced in a short social media post by Tesla, which famously doesn’t engage with the press.

Should a solar project include battery storage?

In either a PPA or self-ownership, solar projects that also include battery storage are more complicated than solar-only projects since they need to carefully establish rules for how and when the battery is used. EECBG Program awardees interested in this option, should review the plans early with their local utility.

How do energy storage contracts work?

For standalone energy storage contracts, these are typically structured with a fixed monthly capacity payment plus some variable cost per megawatt hour (MWh) of throughput. For a combined renewables-plus-storage project, it may be structured with an energy-only price in lieu of a fixed monthly capacity payment.

How do I prepare for a PPA or self-ownership of solar?

To prepare for a PPA or self-ownership of solar (or solar + battery storage) project, EECBG Program awardees will need to identify government departments that should be consulted about solar installation projects, such as facilities/public works; finance; legal; procurement; sustainability; and economic development.