A PPA (Power Purchase Agreement) is an energy purchase agreement between a generator
and a consumer. In PPA contracts with Newman, the energy generation and/or storage
system is installed at the customer’s consumption site. Instead of purchasing the equipment,
you only pay for the energy produced by the system.
The generating company retains ownership of the system and is responsible for installation,
operation, and maintenance during the contract term. Once this term is fulfilled, ownership
is transferred to the customer, allowing them to continue generating savings.
A PPA contract typically lasts between 10 to 15 years, providing stability and clear visibility of
long-term energy costs.
The PPA contract with Newman is not binding. As a customer, you have the option to
acquire the equipment from year one of your contract by paying a residual value.
The contracted rate with Newman includes preventive and corrective maintenance during
the active contract period at no additional cost.
As a customer, you don’t invest a single dollar in the purchase or installation of the energy
generation and storage equipment. This allows you to generate savings and free up cash
flow from day one without decapitalizing or taking on debt for your company.
The PPA offers a fixed energy rate that is lower than the national electricity provider’s rate,
meaning that every kWh generated by the system is a kWh where you save more.
The price is set based on the system’s generation and storage potential, the current rate
paid to the electricity provider, and the contract duration. We combine these variables to
offer a rate that provides the greatest benefits to your business.
Savings range from 30% to 40% of your current kWh rate, depending on the capacity to
generate and consume the energy provided by the generation and/or storage system.
One of the benefits of a PPA is that it limits regulatory investment risks for users in energy
generation and/or storage projects. PPAs also receive strong public support due to their
environmental and economic benefits, supporting the reduction of losses, grid
decongestion, peak demand reduction, and the diversification of the country’s energy mix.
Therefore, the likelihood of contract cancellation or modification due to a reform is very low.
In such a case, the contractual commercial conditions would be renegotiated to favor both
parties.
If your total energy consumption exceeds $5,000 USD per month, you are a candidate. By
knowing your energy consumption data, we can analyze your profile and provide an offer
within 48 hours.oviding stability and clear visibility of long-term energy costs.
Partner with us to drive innovation and sustainability in your energy projects.