Siemens Industry, Inc., recently introduced the Siemens Solar Power Purchase Agreement (PPA) program from its Building Technologies Division. The program, implemented in collaboration with Siemens Financial Services, allows facility managers (fms) to bring “clean” solar energy projects on their properties without making an initial capital investment in solar equipment.
“Demand for solar power is on the rise, but for many of our fms the initial capital investment requirements were just too high,” says Andreas Schierenbeck, president of the Building Technologies division of Siemens Industry, Inc. “With Siemens Solar PPA program, both the financial and technical barriers associated with implementing solar energy are mitigated—we take on the risk—while our customers reap the rewards of clean energy and lower utility bills.”
A Siemens Solar PPA can work well for the public sector entities. Because schools and other government agencies are tax exempt, they are prevented from taking advantage of available federal tax incentives for solar energy projects. Siemens Solar PPA program makes buying solar energy in the public sector more accessible and cost effective: Siemens owns the solar equipment and builds the project on the customer’s property. Fms work exclusively with Siemens for the project’s entire lifecycle: from financing, design, construction, and implementation, through ongoing maintenance. Solar power purchased in this way can also generate electricity expense savings, in addition to helping meet sustainability, clean energy, and environmental goals.
Fms who take advantage of Siemens Solar PPA eliminate the third party financing and contractual agreements that are often requirements of other companies’ PPA structures. Siemens customers work with a single, financially stable company for the project’s entire lifecycle.