Sol Systems’ new profit share
contract offers solar renewable energy credit (SREC) customers the option to
maximize value while making a positive impact on the community.
SREC owners often face the
challenge of choosing between the high risk and potential reward of selling their
SRECs on the volatile open market versus locking into a long-term, fixed-rate
contract that promises a predictable cashflow over a specific term. Sol Profit
Share, Sol’s newest SREC offering, takes the risk out of the higher market
value option while allowing customers the added benefit of reinvesting in
communities that need it most.
Sol Profit Share is still, at
its heart, a fixed price annuity contract set over a fixed term. What makes Sol
Profit Share unique is that while the fixed price shields customers from
potential downswings in the market, it also allows customers to make additional
profit during the upswings. In addition to a guaranteed fixed rate price, the
contract identifies a “strike” price that acts as a threshold number for
determining profit share bonuses. In the event that Sol is able to sell SRECs
above the strike price identified in the Sol Profit Share contract, the
customer and Sol will share in any additional profit above the strike at a
percentage. The specific percentage share will be identified in the customer contract.
And Sol Systems will donate 5% of its Sol Profit Share net profits to
non-profit organizations working to supporting renewable energy access and
sustainability.
Let’s see how this contract
would work in a few different selling scenarios:
Contract
Terms
- Fixed price: $100
- Strike price: $110
- Percentage Share: 50/50
Sale Price: $95 – Customer
receives $100
Sale Price: $100 – Customer
receives $100
Sale Price: $110 – Customer
receives $100
Sale Price: $120 – Customer
receives $105
Sale Price: $140 – Customer
receives $115
Want to learn more about SREC opportunities with Sol Systems? Learn more here or contact the Sol Systems Customer Service Team at 888-235-1538 ext.1 or info@solsystems.com.