Imagine powering your organisation with clean, renewable energy while keeping costs under control. Well, a Solar Power Purchase Agreement (PPA) could help you achieve that.
A Solar PPA is a long-term contract allowing your business to procure electricity directly from a renewable power generator. This can consist of solar energy generated from on-site panels or offsite grid connected solar farms. This allows solar to be purchased as a commodity at a relatively low generation cost compared to forward energy market prices.
There are many different types of Solar PPAs–which I’ll discuss a little later in this article–so you can choose which type works best for your organisation.
Types of Solar PPAs
There are many different types of Solar PPAs, so you can choose which type works best for your organisation.
On-site PPAs
Commercial Solar PPA: This contract typically lasts 15 to 20 years and requires no upfront investment from you. The solar company takes care of everything—from designing and financing to building, operating, and maintaining the solar system at your site. You simply pay a fixed rate per kWh for the electricity generated, which is usually lower than the rates from the grid. This arrangement helps you reduce your reliance on carbon-intensive energy sources, maximise energy savings, and gain better control over your costs.
Private Wire PPA: Similar to the Commercial Solar PPA, this type utilises ground-mounted solar panels installed on nearby land. Electricity is transmitted directly to your site through a “private wire.” Like the Commercial PPA, it typically lasts 15 to 20 years and allows you to decrease your reliance on grid power while cutting costs and carbon emissions.
Off-site PPAs
Offsite PPAs are sourced from grid-scale generation assets, commonly categorised as “sleeved” or “virtual” PPAs. They offer several advantages over onsite PPAs:
The solar system can be built in optimal locations, ensuring higher efficiency.
Energy purchase amounts aren’t limited by your site’s capacity.
Contracts can be flexible, adapting to multiple sites or relocating if necessary.
Sleeved PPAs: Also known as corporate PPAs, these agreements involve you, an energy retailer, and an offsite renewable generation source. Typically, they are take-or-pay contracts, where you commit to purchasing a fixed volume of energy at a predetermined price. The retailer takes delivery of the renewable energy and incorporates it into your supply contract, often allowing up to 70% of your demand to be met by renewable sources. These contracts can range from 10 to 20 years, with shorter terms usually carrying a premium.
Virtual PPAs: Virtual PPAs, or synthetic PPAs, are structured as contracts-for-difference. They include a strike price for the generated electricity; if market prices fall below this price, you pay the generator the difference, and vice versa. This structure offers flexibility in the amount and location of energy supplied and can support multi-site models.
The New Zealand Energy Market
In New Zealand, the energy market is largely shaped by a handful of key players, with Contact, Genesis, Mercury, and Meridian accounting for around 90% of the electricity supply. This has historically limited options for large businesses seeking to secure energy directly from generators, as most businesses are seen as too small for generators to take notice. As a result, they have to deal with retailers where the cost of generation is defined by the market.
However, a wave of independent renewable energy companies is shaking things up. Collaborations like the recent partnerships between Ryman Healthcare, Mercury, and Solar Bay, or The Warehouse Group and Lodestone Energy, or Inghams and Lodestone Energy, are paving the way for organisations like yours to lock in long-term contracts at competitive rates.
How Total Utilities Can Help
Total Utilities offers PPA consultation services as part of our broader energy procurement solutions. As an independent advisor, we assess a wide range of options without bias, ensuring that we recommend the most suitable PPA strategy for your organisation.
To learn more about investing in an onsite or offsite Solar PPA, speak to our experts today.
Our forestry client pursued Toitu Enviromark and ISO 14001 certifications to achieve stringent ESG standards.
Solution:
Total Utilities guided certification journeys for global compliance and enhanced industry reputation.
Outcome:
ESG excellence achieved with outstanding environmental, social, and governance standards.
Toitu Enviromark certification elevated sustainability profile.
Prepared for ISO 14001 accreditation, establishing global forestry leadership.Result:Our partnership led to national forestry leadership, meeting ESG goals and global standards.
Result:
Our partnership led to national forestry leadership, meeting ESG goals and global standards.
Discover the real-world impact of our waste management solutions with glowing testimonials from Mitre 10 and Dilworth School
Vinay Linus, Head of Indirect Procurement, Mitre 10 (New Zealand) Ltd:
“Partnering once again after our successful initial waste and recycling project in 2020 is a testament to the consistently high standards of Total Utilities. This ongoing collaboration with the Mitre 10 cooperative has resulted in substantial cost savings and the signing of over 10 contracts across the country, each customised to meet the specific requirements of our retail sites. The impact of this project extends beyond mere savings; it has also enabled us to streamline operations and introduce sustainable solutions on a national scale.
Pravind, representing Total Utilities, has been an instrumental part of this success. His unwavering diligence and adaptability have ensured that all cooperative requirements were met with precision, even as we navigated various changes throughout the project. His proactive approach and commitment to client satisfaction have made the process seamless and transparent.
This collaboration exemplifies the strength of long-term partnerships in achieving strategic objectives while fostering innovation and responsible business practices.”
Grant Truman, Director of Operations, Dilworth School:
“Partnering with Total Utilities has been a game-changer for Dilworth School. Their expertise in waste management has resulted in annual savings translating to a 43% reduction in our waste costs. Total Utilities has simplified a complex process, freeing up valuable time for both myself and my team. Their innovative approaches have significantly enhanced our waste management efficiency while making steps in reducing our environmental impact and improving the cleanliness and safety on our sites.
Special thanks to Total Utilities’ Sustainable Business Improvement Manager, Pravind Singh, for securing waste management services that not only offer competitive pricing but also align with doing waste better. His efforts ensured a client-friendly process while advancing our knowledge of environmentally responsible practices. Total Utilities has proven to be an invaluable partner in achieving both efficiency in operations and cost while taking steps to be more sustainable.”
New Zealand businesses are grappling with skyrocketing costs and energy inefficiencies in today’s turbulent market. But there’s good news on the horizon—hydro storage has surged significantly in the last week, offering a welcome shift.
At Total Utilities, we’ve teamed up with Panoramic Power to provide innovative solutions that help you take advantage of these changes and optimise your energy management.
Panoramic Power delivers a comprehensive, cloud-based energy management solution with mobile app access, offering the most cost-effective option on the market. With rapid ROI and customisable dashboards and reports, it’s tailored to meet your unique needs.
Let’s take a look at some of the key benefits of our powerful energy intelligence solution:
1. Illuminate and Eliminate Energy Waste
Many businesses are unaware of where they use energy within their plant or facility as utility bills don’t provide information relative to opening hours or production runs. Plus the data on the invoice is looking in the rear view mirror. Panoramic Power’s advanced monitoring technology provides real-time data relative to production schedules and operating hours to easily highlight the cost of energy waste.
2. Upgrade to Real-Time Energy Intelligence
Traditional energy monitoring often falls short as it cannot measure key devices and equipment. Our solution offers real-time insights into every piece of equipment, allowing you to monitor performance and prevent unnecessary downtime. You can track the hours your equipment runs, and immediately identify if it starts drawing more current than is expected. This allows for preventative maintenance and a proactive approach that ensures any issues are detected and resolved before they impact your operations.
3. Capitalise on Energy-Saving Opportunities
Missing out on energy-saving opportunities can be costly. Panoramic Power’s system sends timely alerts about potential savings and efficiency improvements, enabling you to act swiftly and reduce your energy costs. Stay ahead of the curve and maximise every opportunity to cut costs!
4. Implement Comprehensive Business Cases to Drive Change
One of the biggest stumbling blocks to implementing energy savings measures is inadequate data to build a comprehensive business case. Our continuous monitoring provides in-depth analysis of device level energy usage and cost, ensuring you have a complete understanding of your equipment’s running costs. This enables you to make informed decisions to enhance efficiency.
5. Address Minor Inefficiencies Before They Escalate
Small inefficiencies can accumulate and lead to significant costs. Panoramic Power helps you pinpoint and address these issues early, preventing them from becoming major problems and ensuring ongoing cost savings.
Why Total Utilities and Panoramic Power Are Your Partners in Innovation
At Total Utilities, we’re committed to finding innovative ways to help businesses like yours tackle rising energy costs. Our partnership with Panoramic Power offers you access to state-of-the-art energy intelligence technology that provides actionable insights and drives energy cost savings.
Ready to bring Energy Savings to light?
Take control of your energy costs with Total Utilities and Panoramic Power. Reach out to us today to discover how our advanced solutions can transform your energy management strategy and deliver substantial savings.
📩 Contact us now to explore how we can help you navigate the challenges of rising energy costs and implement effective, innovative solutions.
Jonathan Gardiner, Managing Director at Total Utilities, provides his perspective on why rethinking waste procurement is crucial for achieving cost savings and operational efficiency for your business.
As businesses strive to optimise their operations, waste management and procurement often don’t receive the attention they deserve. Yet, effective waste procurement is more than just a compliance requirement—it’s a strategic advantage.
I’ve seen firsthand how companies grapple with several challenges in this area, and addressing these issues is crucial for driving efficiency and cost savings.
Key Pain Points in Waste Procurement
Rising Costs: Transport costs, waste disposal levies, and the cost of carbon liabilities are all on the rise. This financial pressure can strain budgets and affect profitability.
Supplier-Favourable Contracts: Waste contracts often heavily favour suppliers. They may include clauses allowing for sudden increases in inflation, transport costs, and disposal charges, often with short notice and frequent adjustments.
Contract Complexity: Many businesses struggle with the fine print of waste contracts. Understanding how these terms could impact your bottom line is crucial but can be challenging without the right expertise.
How Total Utilities Can Help
At Total Utilities, we specialise in transforming these challenges into opportunities for our clients:
Market-Competitive Pricing: We leverage our extensive market knowledge to secure the best prices and identify waste solutions tailored to your specific needs.
Favourable Contract Terms: Our team is skilled in negotiating waste supply contracts that protect your interests and ensure you’re not burdened by unexpected cost increases.
Cost Reduction and Environmental Impact: By optimising your waste processes, we help you reduce costs and minimise the amount of waste sent to landfills, benefiting both your financials and the environment.
Up-to-Date Insights: We keep a close eye on market trends and government policies, providing you with the latest advice and strategies to stay ahead of changes.
Sustainability Focus: With our finger on the pulse of policy and procurement, we offer smart solutions to enhance your sustainability efforts and contribute to a cleaner, greener planet.
If you’re facing challenges in waste procurement and want to explore how we can help optimise your processes and reduce costs, book a free consultation.
Read Director of Operations Grant Truman’s testimonial on how Total Utilities cut Dilworth School’s waste costs by 43% and transformed their waste management.
“Partnering with Total Utilities has been a game-changer for Dilworth School. Their expertise in waste management has resulted in annual savings translating to a 43% reduction in our waste costs. Total Utilities has simplified a complex process, freeing up valuable time for both myself and my team. Their innovative approaches have significantly enhanced our waste management efficiency while making steps in reducing our environmental impact and improving the cleanliness and safety on our sites.
Special thanks to Total Utilities’ Sustainable Business Improvement Manager, Pravind Singh, for securing waste management services that not only offer competitive pricing but also align with doing waste better. His efforts ensured a client-friendly process while advancing our knowledge of environmentally responsible practices. Total Utilities has proven to be an invaluable partner in achieving both efficiency in operations and cost while taking steps to be more sustainable.”
Grant Truman Director of Operations Dilworth School
– Contact Total Utilities to learn more about our waste management, procurement, and landfill reduction services.
