A power purchase agreement, is a contract between two parties, one which generates electricity and one which is looking to purchase electricity. INECO Energy has experience providing power purchase agreements offering a free, fully maintained solar PV system for 20 to 40 years. During this term, electricity generated by the PV system is purchased at a cheaper rate than your existing energy supplier saving thousands of pounds every year and reducing carbon emissions.
Title to the equipment remains with the finance company throughout. The customer makes a series of ‘rental’ payments during the term of the agreement, which will include interest and charges and the rental payments can be flexed to suit cash flow. VAT is payable on rentals throughout the term. When the minimum term ends, the customer can choose to continue hiring the equipment or return the goods to the finance company.
Lease Purchase is a highly flexible way of financing equipment. It enables the customer to spread the cost of purchasing the asset across the agreement period. At the end of the term, the title of the goods can pass to the customer for payment of a nominal fee.
A Managed Services Agreement (MSA) enables customers to fund their lighting upgrade with zero capital outlay. This type of contract provides customers with guaranteed savings and levels of service delivery. An MSA funded project appears as an operating expense on the customer’s balance sheet. When the minimum term ends, the customer can choose to continue hiring the equipment or return the goods to the finance company.