The PPA is a tax based product that transfers the project’s inherent tax benefits to the PPA provider. In exchange, the project benefactor(Host) receives a reduction in payments or obligation. PPAs are a great fit for any non-profit as well as for companies that do not have (or foresee having) any tax liability.
Other features include:
- Long or short term
- Payment reduction
- Immediate discount for cash purchases (provider passes on tax benefits as a reduction in project cost).
- Can be financed with a Loan or PACE obligation (eliminating financial statement review)