Power Purchase Agreements signed with Lightsource and SunEdison
Sun Investment Group aims to expand its business possibilities by establishing strategic partnerships, which would give access to additional resources, grow the customer base and strengthen various aspects of the business.
The importance of the Power Purchase Agreements (PPAs) in the Solar Industry is significant. Climate change acts a serious role as a new economic driver. Governments are working with the private sector to invest in renewable energy development to reduce greenhouse gas emissions and slow down the effects of global warming. According to the Environmental Protection Agency (EPA), 79% of greenhouse emissions are due to the production of energy from oil, coal and natural gas.
Solar has an opportunity to grow worldwide as renewable energy becomes essential. It also presents a possibility to produce energy locally rather than relying on external fossil fuel acquisition.
More and more countries are recognizing this solar potential and are facilitating innovative public-private partnerships to develop solar enterprises and PPAs are playing a key role in financing the electricity generating assets for these projects.
Power Purchase Agreement model works for both parties because the power rate is fixed and known for a long period of time, usually 20 years, which brings financial certainty to the buyer and a fixed rate of return for the investors.
After Sun Investment Group has successfully settled in the United Kingdom as solar industry professionals it was clear that strategic partnership can be the next substantial step for the business.
Sun Investment Group signed agreements with the biggest solar photovoltaic companies in the UK, such as Lightsource and SunEdison — world-class solar developers which offer structured financing, provide operations and maintenance, manage assets and push boundaries of technical potential.
8MWp Commercial and Industry Rooftop Solar PV project is already being developed by SIG. The execution is done by Lightsource after running successful Due Diligence process and making sure that final contractual terms are suitable for energy off-taker.
By building strategic partnerships the group aims to originate and attract the UK’s Commercial and Industry companies to sign long-term PPAs and utilize existing rooftops in exchange for reduced CO2 emission and cheaper electric energy financed and provided by Lightsource and SunEdison.