Frequently Asked Questions
» Who can be an IPPsolar client?
» What is the process of becoming IPPsolar’s client, from start to finish?
» What is required to start the process?
» How long does it take to install the system?
» What are the incentives provided by the government?
» As a customer of IPPsolar, do I benefit from tax incentives?
» Can the offtaker also invest in the system it hosts?
» In which states does IPPsolar operate?
» How does IPPsolar differentiate itself from other similar companies?
» Why is IPPsolar’s electricity rate cheaper than the local utility’s rate?
» Who selects the installation company?
» What kind of damage will be made to the roof?
» Can the system be ground mounted?
» What if the solar system stops working? Will I be in the dark?
» How reliable is the system?
» I own the property. My tenants pay their electric bill directly to the utility. Can I benefit from IPPsolar’s solutions?
» Can I have all my electricity generated from solar?
» Is the age of the roof important?
Who can be an IPPsolar client?
Any large user of electricity qualifies. IPPsolar does not service residential clients.
What is the process of becoming IPPsolar’s client, from start to finish?
Typically, the client will send us site specifications such as available square footage and electricity consumption. IPPsolar then submits a proposal which outlines the commercial terms. If the terms are acceptable to the client, then we negotiate a power purchase agreement ("PPA") with the client. Once an agreement is reached on the PPA, IPPsolar reaches out to its list of investors to finance the project at no cost to the client.What is required to start the process?
All we need is a phone call or email informing us of your interest and the address of the potential installation site. If you do not have details of the square footage and electricity consumption, we can determine it ourselves from satellite imagery and from your utility bills.How long does it take to install the system?
After financial closing, it takes approximately 3-4 months to deploy the system. There are no major technical challenges to installation.What are the incentives provided by the government?
In the United States, there are Federal and State level benefits. At the Federal level, there are tax incentives in the form of accelerated depreciation and tax credits. For projects that begin construction in 2011, project owners may obtain a 30% cash grant in lieu of a tax credit. The State level benefits come in different forms: a combination of grants, tax credits and renewable energy certificates. Every state has its own program. The challenge is to navigate through the complexities posed by the tax and regulatory environment. It must be noted that without State level incentives, Federal incentives are not sufficient to make a project’s return attractive enough from the point of view of investors.As a customer of IPPsolar, do I benefit from tax incentives?
Generally no. The benefits to the user of electricity materialize in lower cost of electricity. It is the investor providing the financing that will ultimately take advantage of the tax benefits. The tax benefits combined with cash flows from the sale of electricity to the offtaker will generate the rate of return targeted by the investor.Can the offtaker also invest in the system it hosts?
Yes. The offtaker, provided that it is eligible for the tax benefits, can provide the capital to purchase and deploy the system. Thus, the offtaker will enjoy a rate of return from its investment over a long period of time.In which states does IPPsolar operate?
IPPsolar operates in all 50 states and Puerto Rico.How does IPPsolar differentiate itself from other similar companies?
IPPsolar’s competitive advantage comes from:» Deep knowledge of the regulatory and tax environment: IPPsolar’s team has a team of skilled and experienced professionals who have mastered the regulatory and tax regime.
» Deep expertise in project finance: financing industrial size solar power generation systems requires expertise in project finance, which few of our competitors possess.
» Relationship with over 600 sources of capital: One of the most challenging aspects in financing such projects is the ability to source capital and to structure such transactions. Our team has the relationships to successfully raise financing for projects.
Why is IPPsolar’s electricity rate cheaper than the local utility’s rate?
The tax incentives from the Federal and State governments allow us to pass some of the benefits to the offtaker in the form of a lower cost of electricity.Who selects the installation company?
IPPsolar works with many different installation companies. If that is an important factor to the offtaker, IPPsolar can submit a list of reputable installers. Thereafter, the host can select the installer that it deems the most qualified. The host can also select an installer with whom it already has a working relationship. The only constraint is that the installer must be acceptable to the investor and its fees must be in line with industry norms.What kind of damage will be made to the roof?
In the most US states, there are no perforations made to the roof. The system is weighed down by ballast that can be easily removed with no negative effects. The only requirement is that the roof condition must be good. In some states like Florida and Puerto Rico, perforation may need to be considered to address the risk of hurricane strength winds. There are, however, alternatives to perforate the roof in such areas such as "taping" lower output thin film panels to the roof.Can the system be ground mounted?
Yes. Many systems are ground mounted. Site owners who have a lot of land or are sensitive to the roof of their building may elect to install a ground mounted system.What if the solar system stops working? Will I be in the dark?
No, Solar energy compliments the supply from your electric utility. Your facility will use all of the energy that the solar panels produce and whatever additional energy you need will just be drawn from the utility grid as usual. If, for whatever reason the system stops working, the grid feeds more electricity automatically and there is no interruption of power. You will recieve an electricity bill from us every month and pay for only the electricity you produced by the system.How reliable is the system?
Solar PV systems are extremely reliable. In fact, there are systems deployed in the 1960s that are still producing electricity. The panels typically come with a 25 year warranty. IPPsolar will also monitor the system on a real time basis through a web-enabled software application. If we detect any malfunction, we can immediately send a technician to fix the problem.I own the property. My tenants pay their electric bill directly to the utility. Can I benefit from IPPsolar’s solutions?
Yes. In such a scenario IPPsolar could enter into a roof lease agreement with you to install the solar power generation facility and enter into a power purchase agreement directly with the tenant.Can I have all my electricity generated from solar?
It depends. "Net zero" grid consumption is when all your electricity comes from the sun. Net zero is usually possible if the building is not an intensive user of electricity and/or you have a very large surface area available. Typically, solar energy will provide between 10% to 50% of total usage.Is the age of the roof important?
Yes. The power purchase agreement has usually a term of 10 to 15 years. The roof ought to be in a good shape during the term of the PPA. It is possible to renovate the roof during the PPA but tt to match the life of the roof with the life of the system.
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