What is a Solar PPA Power Purchase Agreement?

A solar (PPA) power purchase agreement is a financial agreement where a solar developer arranges for the design, permitting, financing, and installation of a solar roof, solar farm, or solar parking lot on a customer’s property at little to no cost. The developer sells the solar energy generated to the host customer at a fixed rate that is typically lower than the local utility’s retail rate. This lower electricity price serves to offset the customer’s purchase of electricity from the grid while the solar developer receives the income from these sales of electricity as well as any tax credits and other incentives generated from the system. PPA agreements typically range from 10 to 25 years and the developer remains responsible for the operation and maintenance of the system for the duration of the agreement.

Benefits of PPA's to the property owner

• No or low upfront capital costs for the solar system: The developer handles the upfront costs of sizing, procuring, and installing the solar system. No upfront investment and the customer is able to save money as soon as the system becomes operational.
• Reduction of energy costs: Solar PPAs provide a fixed, predictable cost of electricity for the duration of the agreement and are structured in one of two ways:  
1. Fixed escalator plan, the price the customer pays rises at a predetermined rate, typically between 2% - 5%. This is often lower than the projected utility price increases. 
2. A fixed price plan, on the other hand, maintains a constant price throughout the term of the PPA saving the customer more as utility prices rise over time.
• Limited risk: The developer is responsible for the solar system performance and operating/maintenance risk.
• Better leverage of available tax credits: Developers are typically better positioned to utilize available tax credits to reduce system costs.  For example, municipal hosts and other public entities with no taxable income would not otherwise be able to take advantage of the Section 48 Investment Tax Credit.
• Potential increase in property value: Solar systems have been shown to increase property values. The long-term nature of these agreements allows PPAs to be transferred with the property and thus provides customers a means to invest in their homes at little or no cost.
• Extension: At the end of the PPA contract term, a customer may be able to extend the PPA, or have the developer remove the system or choose to buy the solar energy system from the developer. 
• Transferable:  PPA's agreements are typically transferable if a sale or the property occurs.

A solar lease is another form of third-party financing that is very similar to a PPA but does not involve the sale of electric power. Instead, customers lease the system as they would a car.  In both cases, the system is owned by a third party while the host customer receives the benefits of solar with little or no up-front costs. These third-party financing models have quickly become the most popular method for customers to realize the benefits of solar energy.

Colorado, for example, first entered the market in 2010, and by mid-2011 third-party installations represented over 60% of all residential installations and continued to rise to 75% through the first half of 2012. This upward trend is evident throughout states that have introduced third-party financing models.

Apparently, Walmart is a big fan of PPAs and has entered into a lot of agreements at some stores. 

Top 10 Solar Roof Business Installers for 2016

The Minneapolis-based retail giant topped all other American big businesses installing solar, according to a new report from the Solar Energy Industries Association (SEIA). Here are the top 10 solar retail stores. To date, top US corporations have added nearly 1,100 MW of solar roof energy — in over 38 states, Puerto Rico, and Washington, DC. In 2016 alone, US corporations have added 142 MW, more than all of 2015, which topped out at 129 MW.   Read more. 

1. Target — 147 MW
2. Walmart — 145 MW
3. Prologis — 107.8 MW
4. Apple — 93.9 MW
5. Costco — 50.7 MW
6. Kohl’s — 50.2 MW
7. IKEA — 44 MW
8. Macy’s — 38.9 MW
9. General Growth Properties Inc. — 30.2 MW
10. Hartz Mountain Industries — 22.7 MW

We have mapped several hundred of these locations you can search on our solar energy map.

Solar Powered Walmart Store Locations Map

Database of 61 Solar-Powered Walmart Stores with Solar on the Roof

Search the Map for "Walmart" at SolarEnergyMaps.com

Walmart's Corporate Fact Sheet on Solar

Solar City installed the panels in CA

Walmart has demonstrated a commitment to renewable energy and sustainability through various initiatives. 

Here are some key aspects of Walmart's approach to renewable energy:

Solar Power Installations: Walmart has been actively installing solar panels on the rooftops of its stores, distribution centers, and other facilities. These solar installations help generate clean energy and reduce the company's reliance on fossil fuels. Walmart had approximately 11,443 stores globally and it is likely that almost 75% of these locations have solar.

Walmart operates under different store formats, including Walmart Supercenters, Walmart Discount Stores, Neighborhood Markets, and Sam's Club locations. Each format caters to different customer needs and may have different store counts.

Wind Power Projects: In addition to solar power, Walmart has invested in wind energy projects. By purchasing wind energy from wind farms, the company supports the development of renewable energy and contributes to reducing greenhouse gas emissions.

Power Purchase Agreements (PPAs): Walmart has entered into long-term power purchase agreements with renewable energy providers. These agreements ensure a stable supply of renewable energy to Walmart's operations, while also enabling the growth of renewable energy projects.

Energy Efficiency Measures: Alongside renewable energy, Walmart focuses on improving energy efficiency within its operations. The company implements energy-saving technologies, lighting upgrades, and HVAC system improvements to reduce overall energy consumption.

Map of Walmart Stores With Solar Panels on the Roof

New Locations Will Be Updated Search "Walmart Solar" at SolarEnergyMaps.com

See Walmart's Corporate Fact Sheet on Solar

Solar City installed the panels in CA

According to reports at that time, Walmart had installed solar panels on the roofs of more than 500 of its stores in the U.S.

Walmart has been installing solar panels in various locations across the United States as part of its sustainability efforts.  Walmart's solar installations have been widespread, covering stores in multiple states. Some of the states where Walmart has installed solar panels on store rooftops include California, Texas, New Jersey, Arizona, Colorado, and Illinois, among others.

Walmart has a corporate goal to reach 50% renewable energy by 2025, and solar power is a significant part of its renewable energy strategy. They continue to explore opportunities to install solar panels in more stores and distribution centers, as well as pursue other renewable energy projects such as wind power and fuel cells.

Walmart Solar Roof Panels

Walmart installing solar panels

How many Walmart stores have installed solar?  500 plus stores.

Walmart has been a leader in corporate renewable energy adoption and has made significant investments in renewable energy projects, such as solar and wind power. The company has set a goal to power 50% of its operations with renewable energy by 2025.

The amount of money Walmart saves from solar panels will vary depending on factors such as the size of the solar installations, the local solar resources, the cost of electricity in each location, and the specific terms of the solar power purchase agreements or financing arrangements.

However, it is widely recognized that solar power can provide financial benefits to businesses over the long term. By generating their own electricity from solar panels, companies like Walmart can reduce their reliance on traditional grid electricity, which can help lower their operational costs. Solar power is a renewable energy source, and as the cost of solar technology continues to decrease, the financial returns on solar investments can improve.