While there are several ownership options these days, most options stem from one of two ownership models: outright purchases and Power Purchase Agreements (PPA's). TMI's development team is here to help you weigh your options and understand how these two models will impact your future energy spend and savings. 

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• Purchasing / Owning: This model can come in the way of a cash purchase or a loan, either way the end result is the same. When a customer purchases their solar energy system they then own the equipment and the energy it produces. No payments for the energy produced are due to a third party. Depending on your purchasing power, and/or available financing opportunities, this may, or may not, be the best path forward for you and your organization. It's important to understand how interest rates, down payments, and tax liability will directly affect your ROI and cashflow.
  
  Thanks to the Inflation Reduction Act (IRA), non-profits can now utilize tax credits via "Direct Pay" to help reduce the upfront costs of going solar. Click here to learn more about how to access the Investment Tax Credits (ITC) as a not-for-profit. 
  
  More solar energy incentive information can be found here. 

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• Power Purchase Agreement: PPA's are simply a contract to purchase power produced by the solar energy system. So, if the system does not produce energy you pay nothing. Similar to how your organization already purchases energy from the utility, you will now also be purchasing energy from your solar array. In a typical PPA the organization/customer does not own the system but rather only pays for energy produced and delivered by the solar energy system. This model can be attractive due to the lack of financing and/or upfront cash required with an outright purchase. PPA's can also bring other benefits such as the owner being responsible for maintenance, and lower/reduced energy costs when compared to the grid. If you and your organization are considering a PPA be sure to understand the long term costs of entering such an agreement. PPA's may also include the option to purchase the system outright after a number of years. Read more about PPA's from the EPA.

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