Businesses across the U.S. are actively pursuing clean energy options to fuel their operations. Solar power in particular is more ingrained in our daily lives than ever before \u2014 even in your coffee! If you\u2019ve visited a Texas Starbucks recently, you may have enjoyed a hot and steamy cup of solar-powered joe. In April 2019, the coffee company inked a deal to power 360 stores in the Houston and Dallas areas with solar energy.<\/p>\n\n\n\n
And that\u2019s just one example.<\/em><\/p>\n\n\n\n Several factors influence the decision to use solar energy, whether it\u2019s to become more eco-friendly, meet investor demand for sustainable energy, or cut costs and increase profits. As more companies start seeing the switch to solar as a smart business decision, they must determine how to best achieve those green energy goals.<\/p>\n\n\n\n You don\u2019t see solar panels atop your local Starbucks, so how is it powered by the sun?<\/em><\/p>\n\n\n\n To answer that question, we want to show how businesses \u2013 including yours \u2013 can adopt solar power as part of their green energy strategy.<\/p>\n\n\n\n Today, businesses have a plethora of options and tactics available if they want to become more environmentally friendly, but it often starts with an investment in solar. While solar panels can be a good start (since you have the available real estate on the roof of your building), they aren\u2019t the only way to harness the power of the sun\u2019s rays. In fact, your business has three main ways to make the switch to solar power, and they\u2019re divided into two categories: <\/p>\n\n\n\n First, let\u2019s dig into the details of offsite solar, as this is the strategy most companies pursue.<\/p>\n\n\n\n It\u2019s pretty simple: If a business claims it uses solar power and it doesn\u2019t have panels feeding electricity directly into its facility, then it\u2019s using offsite solar. This form of solar power involves the buying, selling, and trading of SRECs. As we discuss in a related blog post, these credits represent all solar power that solar energy facilities generate and add to the grid. For companies who are looking to substantiate their reduction of greenhouse gas emissions and become a more environmentally conscious company, SRECs are a real, tangible way of doing so.<\/p>\n\n\n\n While there are many ways to buy, sell, and trade SRECs, the three most popular are as follow: <\/p>\n\n\n\n The latter of which is arguably the most popular form of investment in solar.<\/p>\n\n\n\n Solar tax equity investments are an unorthodox investment, but nevertheless just as effective as other options for corporations. It\u2019s a means of investing in specific solar projects. In fact, this is the type of deal Starbucks sealed with a solar power generator in April 2019.<\/p>\n\n\n\n Because of the intricacies of financial agreements, these investments can quickly become complicated. Thankfully, we\u2019re here to help! Using our Starbucks example, here\u2019s how solar tax equity works in a nutshell. <\/p>\n\n\n\n In essence, companies that select solar tax equity as an investment opportunity receive a two-fold benefit: not only do they buy green power in the form of SRECs, but they also help build local solar energy infrastructure. <\/p>\n\n\n\n The definition of an SPPA<\/a> lies in its name: Companies agree to purchase solar power in the form of SRECs. The difference between PPAs and tax equity is that, rather than directly investing in the construction of solar projects, portfolios, and\/or farms, power purchasers only buy the product (i.e. electricity) of solar power generators.<\/p>\n\n\n\n There are two types of PPAs: Financial PPAs (FPPAs) and physical PPAs (PPPAs). Here\u2019s the difference: <\/p>\n\n\n\n Which begs the question: <\/p>\n\n\n\nHow Businesses Get Solar Power: 3 Methods<\/h2>\n\n\n\n
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Offsite Solar for Businesses<\/h3>\n\n\n\n
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1. Solar Tax Equity Investments<\/h4>\n\n\n\n
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2. Solar Power Purchase Agreements (SPPA)<\/h4>\n\n\n\n
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