Hybrid Model for Financing Solar PV at Government Sites
February 1, 2012
Title: Financing Solar PV at Government Sites with PPAs and Public Debt (fact sheet)
Author: Claire Kreycik, NREL
Historically, state and local governmental agencies have employed one of two models to deploy solar PV projects: (1) self-ownership (financed through a variety of means) or (2) third-party ownership through a power purchase agreement (PPA). Recently a third option was pioneered; a way to combine many of the benefits of self-ownership and third-party PPAs through a bond-PPA hybrid. This fact sheet describes how the hybrid model works, assesses the model's relative advantages and challenges as compared to self-ownership and the third-party PPA model, provides a quick guide to project implementation, and assesses whether the model is replicable in other jurisdictions across the United States.