SPPA providers can provide the funding or installation themselves (EPA, 2014). Thus homeowners only need sign the contract and then can enjoy cleaner electricity, usually at a lower price. The City of College Park has many PV solar installations through SPPA as well. One of the biggest projects is a 631 kW PV solar installed at the University of Maryland in 2010. A 20-year Power Purchasing Agreement (PPA) is provided with Washington Gas Energy Services (WGES). More than 2,600 PV solar panels have been installed on the roof, generating 7,920 MWh annually, with an estimated annual utility savings of $88,150. Table 2.5 Common PV Solar Financing Options Name Upfront Cost Term Advantages Disadvantages Cash pay full upfront cost none avoid financing cost large one-time Purchase directly with cash and third party investment (avg. participation $20,000 for a 4kW system) homeowners enjoy all rebates, incentives, and homeowner responsible SRECs. for system maintenance Home Equity borrow upfront cost 5 to 30 interest rate can be interest rate may Loan against home value years favorable and tax increase deductible homeowner responsible homeowner enjoys all for system maintenance rebates, incentives, and, SRECs Other Loan borrow upfront cost up to 10 interest rate may increase interest rate often not tax Products from bank, credit union, years deductible or against PV solar homeowner responsible itself for system maintenance homeowner responsible for system maintenance SPPA third party pays upfront 15 to 20 no direct upfront cost third party owns the cost and owns the years system and enjoys the system; homeowners rebates, tax incentives, third party usually lease the system, and SRECs responsible for purchase power maintenance Ongoing savings are lower than direct cash payment Property most upfront cost 10 to 20 low upfront cost (about mortgage lien may be Assessed covered by local years $100) problematic homeowner Clean government secured homeowner owns system responsible for system Energy with a property lien maintenance interest tax deductible Note: Information in the table has referred to fact sheet of DOE
SPPA providers can provide the funding or installation themselves (EPA, 2014). Thus homeowners only need sign the contract and then can enjoy cleaner electricity, usually at a lower price. The City of College Park has many PV solar installations through SPPA as well. One of the biggest projects is a 631 kW PV solar installed at the University of Maryland in 2010. A 20-year Power Purchasing Agreement (PPA) is provided with Washington Gas Energy Services (WGES). More than 2,600 PV solar panels have been installed on the roof, generating 7,920 MWh annually, with an estimated annual utility savings of $88,150. Table 2.5 Common PV Solar Financing Options Name Upfront Cost Term Advantages Disadvantages Cash Purchase pay full upfront cost directly with cash none avoid financing cost and third party participation homeowners enjoy all rebates, incentives, and SRECs. large one-time investment (avg. $20,000 for a 4kW system) homeowner responsible for system maintenance Home Equity Loan borrow upfront cost against home value 5 to 30 years interest rate can be favorable and tax deductible homeowner enjoys all rebates, incentives, and, SRECs interest rate may increase homeowner responsible for system maintenance Other Loan Products borrow upfront cost from bank, credit union, or against PV solar itself up to 10 years interest rate may increase homeowner responsible for system maintenance interest rate often not tax deductible homeowner responsible for system maintenance SPPA third party pays upfront cost and owns the system; homeowners lease the system, purchase power 15 to 20 years no direct upfront cost third party usually responsible for maintenance third party owns the system and enjoys the rebates, tax incentives, and SRECs Ongoing savings are lower than direct cash payment Property Assessed Clean Energy most upfront cost covered by local government secured with a property lien 10 to 20 years low upfront cost (about $100) homeowner owns system interest tax deductible mortgage lien may be problematic homeowner responsible for system maintenance Note: Information in the table has referred to fact sheet of DOE
660_-_college_park_final_report_august_2015.docx