When it comes to renewable energy solutions, deciding between egg’s energy Management Services and a Power Purchase Agreement (PPA) is a significant decision that can impact your long-term energy strategy. Both options provide access to sustainable solar energy without the burden of hefty upfront costs, but they differ in terms of contract flexibility, ownership, maintenance, and overall cost structure.

Power Purchase Agreement Vs. Energy Management Services

So, what is the egg Managed Service proposition? It’s a unique financial proposition that reduces any upfront capital payments for solar installations to 0, allowing the business to install solar panels without the hefty upfront payments for them. This way the savings from any solar installation can be realised from Day One.

From the Power Purchase Agreement explained to delving into energy management services, egg will give you a clear overview of how Power Purchase Agreements work, how to get a Power Purchase Agreement and how a solar Power Purchase Agreement works.

Power Purchase Agreement Explained

A Power Purchase Agreement typically involves long-term contracts (around 15 to 25 years) between a buyer and a power producer. Under this agreement, the buyer agrees to purchase electricity at a predetermined rate over a set period. The energy provider installs and operates a renewable energy system (such as solar panels) on the buyer’s property, and the buyer purchases the electricity generated. You don't own the system in a Power Purchase Agreement, focusing instead on purchasing energy from the solar panels at a fixed rate.

Power Purchase Agreements help businesses and institutions stabilise energy costs and reduce their carbon footprints to meet sustainability goals while transferring maintenance and operational risks to the energy provider.

What Is The egg Energy Managed Services?

egg’s Energy Managed Service goes beyond traditional PPAs by offering additional benefits like access to EV charging and infrastructure alongside solar energy. Our Energy Managed Services are a set of solutions designed to monitor, control, and optimise organisation’s energy consumption. These Energy Managed Services and solar storage improve efficiency, reduce costs, and enhance sustainability.

The Energy Managed Services provide more flexible contract terms, allowing for shorter commitments (5-7 years) and easier adjustments to match changing energy needs. The service offers the benefits of solar energy without the ownership responsibilities or upfront costs, while also providing flexible payment models and predictable monthly fees for easier budgeting.

Exploring the key differences

When it comes to Energy Managed Services, they allow for scalable solutions and system upgrades as your energy consumption changes. By comparison, a corporate Power Purchase Agreement is often less flexible in terms of system adjustments and upgrades. The Energy Managed Services also have simplified pricing structures and offer transparent monthly payments covering all services, whereas a corporate Power Purchase Agreement can be more complex with various clauses and potential fees, making it less straightforward to navigate.

You can get more flexible payment models and predictable monthly fees for easier budgeting with energy management services. However, a corporate Power Purchase Agreement may involve escalating rates over time, potentially leading to higher costs in the future.

Contact us if you have any questions about Power Purchase Agreements or Energy Management Services and to find out how egg can help your clean energy transition.

Power Purchase Agreement Vs. Energy Management Services FAQs

What are the four types of energy management?

The four main types of energy management focus on different aspects of optimising energy use and efficiency. These types are: Strategic Energy Management (SEM), Operational Energy Management, Technical Energy Management and Financial Energy Management.

How much does an energy management system cost?

It depends on various factors, including the system complexity, business size, and industry needs.

How does a solar power purchase agreement work?

A Solar Power Purchase Agreement is a financial arrangement where a third-party developer installs, owns, and maintains a solar energy system on a customer’s property. The customer purchases the generated electricity at a fixed rate, typically lower than the local utility rate.

How to get a Power Purchase Agreement

When you want to get a Power Purchase Agreement, you need to assess your businesses current energy usage and costs and consider your sustainability goals and long-term energy savings. You can use these factors to help you find the right contract terms and maintenance responsibilities. It’s important to consider the long-term aspect of a Power Purchase Agreement, as some contracts can last up to 25 years.