Georgia Solar PPAs are now viable, thanks to the recently passed Solar Power Free-Market Financing Act (House Bill 57). Power Purchase Agreements (PPAs) are the most common vehicle for financing commercial solar installations. Solar PPA legalization in Georgia will make it much easier for solar project developers and EPCs to generate new business.
GEORGIA SOLAR PPA QUALIFICATIONS
The Solar Power Free-Market Financing Act ensures that utilities and grid operators can no longer interfere with the installation, operation and financing of solar systems. You can view the legislation here; the key commercial solar qualifications are:
- The energy “offtaker” must also be the system “host”. Solar must be installed on property owned or operated by the entity the using the power from the system. One cannot “wheel” the solar energy across the property line to another offtaker.
- The solar facility must be connected to the utility’s distribution system. No off-grid PPAs.
- Commercial installations must be below the “capacity limit”of 125% of the maximum annual peak kW demand.
There are other practical limitations to Georgia Solar PPA viability. We expect commercial PPAs for the Commerical and Industrial sectors to be most viable for offtakers with monthly energy loads averaging over 75,000kWh and $8,000. Viable Georgia Solar PPA projects will be over 500kW, and require about a half an acre of unshaded, south-facing mounting area.
HOW TO PRICE YOUR GEORGIA SOLAR PPA PROJECT
If you are a solar project developer or and EPC with a potential Georgia Solar PPA project that meets these requirements, contact GreenZu today for a free financing assessment to determine how to price and position a new Georgia Solar PPA. GreenZu has developed, financed and installed over 120 PPAs throughout the United States; we specialize in behind-the-meter solar PPA project development and financing. Our services include:
- Project planning to maximize value and salability
- Structured financing support
- Investor targeting and outreach strategy
- Preliminary due diligence surveys
- PPA, Site Lease, SNDAs and other project documents crafted for investor acceptance and value creation
- Risk mitigation
- Development-stage funding, including equity retention strategies
- Investor-facing project summaries
- 1-week turnaround to indicative pricing
- Investor comparisons and recommendations
- Term sheet negotiations
- Investor data room creation and administration
- Purchase-Sale agreements and other definitive investment documents
- Acquisition and financing negotiations through close
- SPE creation, entity management and accounting services