Financing of Floating Solar Farms
Suniboat arranges financing for floating solar farms in a multitude of ways to make it easy for consumers to adopt small and large floating solar farms.
A Floating Solar Power Purchase Agreement (PPA) is a financing arrangement that allows businesses or government agencies to purchase solar electricity generated from Suniboat based floating solar farms with no upfront capital cost. To achieve this, the consumer organization provides a suitable water body as a location for the installation. Our PPA provider pays for the cost of the floating solar farm and assumes all responsibility for ownership, operation, and maintenance once the project is complete. The consumer enters into an agreement to purchase the electricity produced by the floating solar farm owned by the PPA provider at a predetermined rate per kilowatt-hour, the same unit of measurement on your standard utility bill. Floating Solar PPAs provide access to solar electricity without the burden of owning or operating solar equipment by transferring the initial project cost to the PPA provider.
Our structured PPA allows consumers to reduce electricity costs immediately and realize increased savings over time as grid electricity prices rise. Once the PPA contract period expires (typically 15 - 20 years), consumers can purchase the system at a reduced price, initiate another PPA, or have the floating solar farm removed.
Benefits of Suniboat’s Floating Solar Farm PPAs
- No capital investment: There’s no investment involved in entering into a floating solar farm PPA.
- Immediate savings: Lower electricity bills from day one.
- Predictable electricity costs: Locked in low energy costs and protection from unpredictable tariffs.
- No risks: Protection from the possibility of performance issues, pay for only for the power that the system produces.
- No O&M costs: Freedom from the costs and responsibility for ongoing operations and maintenance of the floating solar farms.
- Off-balance-sheet advantage: A floating solar farm PPA isn’t a debt. It’s like a regular utility bill, so it doesn’t tie up capital which could be used for other investments.
- Corporate sustainability: By using clean, renewable energy from solar on water, organizations can make a real difference for the environment by reducing greenhouse gases and saving water thus setting an example for sustainable business practices.