Revenues & Operating costs
Revenues generated from the solar assets will be derived from a mix of the following revenue streams:
(a) Government support mechanism: Feed-in Tariffs (FiTs) and Renewable Obligation Certificates (ROCs) are 20-year inflation-protected Government support mechanisms for the generation of solar PV. FiT rates and ROC levels are determined based on the technology, size, and date commissioned. The pipeline of projects that Energy Garden is considering for acquisition contains a mix of FiT and ROC solar PV assets, with varying levels of support.
(b) An export tariff (applicable to FiT solar PV assets only) is a guaranteed minimum price paid for electricity exported to the grid. On smaller projects, where part of the electricity is used on site, export is deemed to be 50% of total generation at a set rate under the FiT, to avoid additional metering charges.
(c) A power purchase agreement (PPA) with either a private offtaker or with a large utility or corporate entity is a contract that governs the terms and sale of electricity.
Revenues will be allocated first to ongoing operational costs. These costs will cover a number of contracts to ensure the solar PV assets are running as efficiently as possible. These include, among others:
- Operation and maintenance (O&M)
- Asset management
- Lease costs
- Insurance costs