Power Purchase Agreements can help with facility infrastructure upgrades

A range of funding solutions, federal tax programs and many state and local incentives are available to help improve aging energy infrastructures


A range of funding solutions, federal tax programs and many state and local incentives are available to help healthcare organizations improve their aging energy infrastructure and develop an energy system not dependent on the electric grid or back-up generators, according to an article on the Medical Construction & Design website.

Many institutions are using Power Purchase Agreements (PPAs) to fund improvements with little-to-no upfront costs. A PPA also allows the institution to purchase electricity and/or thermal power from the PPA provider; through these payments, the hospital is also paying off a portion of the cost of a new system, the article said. 

The PPA provider is the equity investor/owner of the system and, as a for-profit entity, can offer federal and state tax benefits. 

The PPA provider also helps reduce risk as it provides performance guarantees to the hospital.

Read the article.

 



March 3, 2015


Topic Area: Energy and Power


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