Energy Shared-Savings Agreement

At the end of the 25 year contract, the host organization may:

1. Remove the solar panels
2. Take the title to the solar panels
3. Continue the ESSA, which includes maintenance and a savings guarantee

An organization may buy out the ESSA contract after 5 years at fair market value.  This effectively allows the organization to purchase the system after incentives without having to go through the IRS process of Elective Pay.

The Energy Savings amount is calculated in the following way:

Solar Faithful calculates what the utility bill would have been without solar. This calculation comes from the solar production used on site plus the kWh used from the utility. This total number is what the organization would have used from the utility without solar. This number is multiplied by the utility rate to determine the utility bill without solar.

(Total kWh Used) x (Current Utility Rate) = Calculated Grid-Only Cost

The organization’s actual bill is subtracted. Solar Faithful takes the bill without a solar number and subtracts the lower bill actually received from the utility company.

The difference is the total energy savings (money saved because of the solar array).

(Calculated Grid-Only Cost) – (Actual Utility Bill) = Total Monthly Savings

The organization shares some of those savings with Solar Faithful. The organization pays Solar Faithful 90% of that calculated savings amount and keeps 10%.