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Solar Power Purchase Agreement (PPA)
Private — third-party solar developer / financier (system owner)See programDeadline: Rolling — negotiated per project.
A third party owns the solar (or solar + storage) system on the customer's site; the customer buys the power produced at a contracted rate (usually below retail), pays little/nothing upfront, and avoids O&M. Because the taxable developer captures the 48E ITC + depreciation and passes value through as a lower rate, the PPA is the standout tool for tax-exempt clients who cannot use the credit directly — an alternative to self-owning and bridging Direct Pay with the IL EE Revolving Loan Fund. In Illinois, third-party PPAs are generally permitted for non-residential customers (confirm current ICC / utility tariff treatment per customer class). Interacts with IL Shines RECs (owner typically claims RECs) and CEJA net-metering; model REC ownership explicitly. Mutually exclusive with C-PACE (PPA = third-party owns; C-PACE = client owns).
Program details
- Agency
- Private — third-party solar developer / financier (system owner)
- Level
- Private
- Category
- Third-Party Solar Financing
- Eligibility
- Site host with suitable roof/ground area, long-term occupancy, and a creditworthy offtaker. Standout fit for tax-exempt entities (schools, churches, municipalities, nonprofits) that cannot use the ITC directly.
- Funding Amount
- Little or no upfront cost to host. Customer buys power at a contracted fixed/escalating rate (typically below retail). Terms commonly 15-25 years. Developer owns the system and monetizes ITC + depreciation, pricing the benefit into the PPA rate.
- Deadline
- Rolling — negotiated per project.
- Status
- open
- Project Types
- solar, storage
- Client Types
- commercial, nonprofit, municipal, educational, religious
- Notes
- The tax-exempt play. Decision: tax-exempt + solar -> compare PPA (developer monetizes ITC) vs self-own + Direct Pay bridged by IL EE RLF. Pairs with IL Shines RECs (lower rate) and Energy Community Bonus +10% ITC (verify Cook County eligibility against the current Energy Community list in Notice 2025-31 Appendix — not yet confirmed). IL third-party-ownership tariff treatment flagged for verification.
Source: Grantya research. Confirm current terms with the administering agency before applying.