Business Summary:
A leading US developer of solar electric installations is offering for sale a package of 8 installations in Hawaii, installations that have secured Power Purchase Agreements (PPA) with commercial and public utility customers. Assuming that historically conservative increases in utility rates continue, these sites are expected to generate over $3,250,000 in revenue over the life of the contracts, plus significant depreciation and other tax benefits.
This company, with development projects in Western US and Asia, secures long-term PPA contracts with public and private customers and then develops large-scale land-based, or smaller, building-mounted, photo-voltaic systems to supply their electrical energy needs at 90% of the prevailing public utility rates. The firm’s business model calls for it to sell groups of these projects as they are developed, with optional supporting maintenance services, and then move on to new projects. These Hawaiian PPA contracts provide for a guaranteed cash flow for 10 or 20-year terms with a total of $192,000 in the first year and expected to increase in subsequent years.
This could be an ideal investment for someone seeking passive income to offset passive losses from other investments. These very low–maintenance installations could also be an attractive, secure, practical investment for an absentee owner.
Facilities: 8 photovoltaic (PV) panel installations, some building mounted, one large ground-based array.
Competition: The PPA contracts effectively eliminate competition from electrical power suppliers.
Expansion: An additional 10 PV electric installations, with income also secured with long-term PPA contracts, are now approaching completion. These PPA installations, also in the Western US, will be subsequently presented to the purchaser of the initial 8-unit package on a Right of First Refusal basis.
Support: Service contracts with this company’s network of installers and technical support teams will be made available to the purchaser.
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