To meet the increased demand for locally produced solar energy, a long-term electricity trading agreement has been signed between the municipal energy company Nybro Energi and the Soltech company Soltech Energy Solutions. The agreement involves PPA solutions for large-scale solar installations. Håkan Dahlgren, CEO at Nybro Energi and Rickard Lantz, business development manager at Soltech Energy Solutions tell us more about the concept that will contribute to an increased share of solar energy in Nybro municipality.
The power purchase agreement, PPA, is an agreement where an energy operator finance, install, own, and manage, for example, a solar cell installation on a property owner's roof. The property owner does not pay for the solar energy installation and is not responsible for operation or maintenance, but only undertakes to buy the produced solar electricity. Usually on a 20-year contract period.
PPA solutions have been common internationally, mainly in wind power but also for large-scale solar energy. This type of business model is growing in popularity also in Sweden as many property owners appreciate that they do not have to tie up capital to finance the solar facility, but instead get a long-term energy contract with a set price. It is cost efficient and no responsibility for the actual technical solar installation. Nybro Energi, together with Soltech Energy Solutions, will enable more companies in Kalmar County to take advantage of the benefits of the PPA agreement.
Great interest in the county
Nybro Energi has a long history of green energy solutions. The new solar energy collaboration has already resulted in two solar cell installations for CTT Bribo and Eurosteel and another ten projects are underway. Håkan Dahlgren, CEO of Nybro Energi, testifies that the new solar energy cooperation has been very well received by entrepreneurs and that the municipal energy company is experiencing a great interest.
– Our solar cell arrangement is a solution where everyone is a winner. The companies can focus on their core business and at the same time contribute to the green transition. The purpose of the concept is to facilitate business life in Nybro, which is an important part of our mission. We are very much looking forward to helping more companies benefit from the sun's rays without having to own, install or manage the solar system themselves. We take care of that part, says Håkan Dahlgren, CEO of Nybro Energi.
Rickard Lantz, business development manager at Soltech Energy Solutions agrees and talks about the increased interest in this type of solution.
– We clearly notice that more and more property owners in Sweden, and not least in Kalmar County, are starting to open their eyes to smart financing solutions and electricity trading agreements for solar power. It should be easy to acquire solar cells and with a PPA agreement the customer also avoids start-up costs, says Rickard Lantz, business development manager at Soltech Energy Solutions.
This is how the PPA for solar cells works:
1. The customer contacts Nybro Energi and a site visit are made where the conditions for installing a solar cell plant are reviewed.
2. Nybro Energi together with Soltech Energy Solutions produces a proposal. After an approved proposal, the solar energy system is installed on the property's roof. Nybro Energi is the owner of the solar energy system itself.
3. The property owner signs an agreement to buy the electricity the facility produces at a predetermined price. Often the agreements run for 20 years.
4. Nybro Energi is responsible for operation, regulatory compliance, insurance, and maintenance of the solar energy system throughout the contract period.
5. The property owner uses the solar electricity that the facility produces and does not have to think about operation, service maintenance or volatile electricity prices. A PPA agreement also means that the property owner starts saving money from day one as no initial investment costs are added.