GeoGenix, a New Jersey-based residential and commercial solar installer, says it is now offering a power purchase agreement (PPA) program for commercial customers. Through the third-party finance model, GeoGenix and its PPA partner will cover the costs of installing rooftop PV, as well as operate and maintain the system.
The energy generated by the system will be sold back to tenants at a discount of up to 40% off the retail electric rate, according to the company. Rates are protected with a 2% to 3% fixed escalator clause. After 15 years, customers will assume ownership of the system, thus receiving free electricity for the remainder of the system's life.
Due to a current surplus in the New Jersey solar renewable energy credit (SREC) marketplace, the prices of SRECs have recently declined. This has made it difficult for system owners to calculate the payback periods for systems and to finance projects, says Gaurav Naik, principal of GeoGenix.