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-----Original Message-----
From: Rebecca Van [mailto:rvan@tnag.net]
Sent: Sunday, October 25, 2009 3:04 PM
To: Monty
Subject: Accelerating Solar Financing: SolarTech Releases First Industry
Standardized PPA Contract
http://www.electroiq.com/index/display/pv-wire-news-display/136445556.html
Accelerating Solar Financing: SolarTech Releases First Industry Standardized
PPA Contract SolarTech (www.solartech.org) today announced a major
milestone in the development of best practices. The consortium will unveil
the first ever contract template for Power Purchase Agreement (PPA) solar
financing at the upcoming Solar Power International 2009 conference in
Anaheim on Oct. 28th. In a recent study, Gartner Group defines the PPA
financing instrument as a major solar driver and predicts 2.3GW of PPA
financed solar by 2013. PPA deals can take several weeks of legal review and
contract negotiations. Utilizing the SolarTech standard PPA templates can
substantially reduce the legal review time, minimizing associated legal
costs and shortening the negotiation timeline. "The use of an industry
accepted form should reduce negotiating time by 50-75%," said Ed Feo, Senior
Partner, Milbank, Tweed, Hadley and McCloy LLP. "We see a lot of PPA deals
come through our office. Many of the terms are similar and yet are still
negotiated in every transaction. It is far more cost effective for solar
integrators to focus on 20% of the terms that differ from deal to deal, than
to rewrite standard material," explains Feo. The effort was led by
SolarTech's Finance Committee comprised of SolarTech members from solar
financing, project developers and legal firms. The committee enjoyed
extensive legal support donated by two leading legal firms: Milbank, Tweed,
Hadley and McCloy LLP and Paul, Hastings, Janofsky & Walker LLP. "Using
a standard PPA form with the credibility of a well known association like
SolarTech lends legitimacy to the agreements," said William DeGrandis,
Partner, Paul, Hastings. "We will endorse the use of this template with our
clients as a means to substantially reduce negotiation time and enhance the
cost effectiveness of solar energy projects. I look forward to working with
SolarTech to make standardized legal instruments an industry norm," states
DeGrandis. "The industry needs to achieve a 15% annual reduction in
end-to-end cycle time by 2013 if California is to meet the 2017 goals of the
California Solar Initiative," said Doug Payne, Executive Director,
SolarTech. "SolarTech was formed to optimize the delivery of PV systems for
the benefit of California energy consumers. We are pleased to introduce
these important tools at Solar Power International 2009." Looking
forward to 2010, the templates being introduced today will be vetted at
SPI2009 through the Execution & Implementation Track, led by SolarTech.
Several variations of templates could emerge to meet the specific needs of
individual states or markets. The effort was funded in part by a grant
from the California Energy Commission. The grant's overarching objective is
to develop and promote best practices for commercial and residential solar
markets. Defining innovative financial models and market mechanisms that
support grid parity for solar photovoltaics are fundamental to the grant's
goals. Specific SolarTech targets within this Energy Commission PIER grant
include the following: Contribute to lowering the balance of system
costs, as a percent of the current $9/Watt-peak (Wp) system costs to the
projected $5/Wp system costs. Reduce the end-to-end PV installation time
from the current 25 to 50 weeks to 9 weeks by 2013. The PPA and Site Lease
agreement contract templates will be available for download from SolarTech's
web site shortly after the "System Financing: Optimizing Financing Methods
and PV Economics" session on Wednesday at Solar Power International. Visit
www.solartech.org. About SolarTech SolarTech, an initiative of
Silicon Valley Leadership Group, is a collaborative organization formed to
create a Solar Center of Excellence in Silicon Valley. The purpose is to
identify, prioritize, and resolve technical and market barriers to solar
technology by addressing issues of performance, processes, standards, and
workforce readiness. The SolarTech consortium's industry-spanning collection
of products and services will assure member companies achieve faster time to
market, with lower risk, and higher consumer adoption of solar powered
systems. For more information visit www.solartech.org. Copyright 2009,
SolarTech, All Rights Reserved A service of YellowBrix, Inc.
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