Planet Ark Power’s Power Efficiency Agreement (PEA) is an Australian first of its kind shared savings and services model for customer sited energy storage. It is a zero-dollar down solution that presents no risk to customers, while still allowing customers to enjoy the demand charge savings from Planet Ark Power Energy Storage Systems (PA Power Station). Customers choosing this financing option only pay for a fixed portion of the savings achieved through reduced energy demand.
Under a PEA, Planet Ark Power installs, owns, operates and maintains the PA Power Station at the host location. In return, Planet Ark Power receives a share of the savings from the reduced demand and other energy charges on the customer’s electricity bill. The agreement works well with solar PV, electric vehicle and other energy efficiency measures.
The Power Efficiency Agreement requires zero dollars upfront from businesses, allowing business owners to invest resources better suited for maximising their profits. A PEA is the ideal solution for companies with limited budgets, or where making a capital investment is not desired or feasible for whatever reason.
One of the main benefits of a shared savings model for the customer is that because Planet Ark Power shares in the savings, we are incentivised to continually analyse the performance of the PA Power Station and seek additional savings. This most often happens by deploying software or hardware upgrades to maximise the system’s efficiency. In this way, it’s a win for everybody.
And unlike a cash sale or lease structure, customers are not obligated to make any payments unless the demand charge savings are realised. With Planet Ark Power absorbing all of the performance risk, customers need not be concerned whether the savings will generate suitable returns.
Put simply: If the PA Power Station doesn’t perform, we don’t get paid.
Typical terms for a PEA are:
- Zero money down/upfront
- Ten year term with an option to extend
- Savings shared 50% to customer and 50% to Planet Ark Power
- No transfer of ownership, service based model
- All risk of performance rests with Planet Ark Power
- Other energy efficiency measures/equipment may be bundled such as LED or Power Factor Correction at the discretion of Planet Ark Power