The Versatility in Solar Contracts

Understanding the variety of solar contract structures available is crucial for building owners. Each model has unique attributes that should be aligned with the goals of the client. In this article, we break down the versatility in solar contracts and how Brightcore supports clients in making informed decisions.

Solar contracting is not one-size-fits-all. From financing mechanisms to ownership models, solar contracts are designed to meet the financial, operational, and sustainability priorities of different stakeholders.

Flexibility is key. Some property owners want to minimize upfront costs, while others prioritize long-term savings or energy independence. Likewise, institutions may want to own the system outright, whereas others prefer off-balance-sheet solutions.

At Brightcore Energy, we work with clients to determine the contract type that best supports their energy goals. Whether it’s a campus looking to reduce operational expenses, or a commercial building owner aiming to increase asset value, the right contract is essential to realizing those outcomes.

Types of Contracts: Power Purchase Agreement (PPA)

One of the most common solar contract models is the Power Purchase Agreement (PPA). In a PPA, a third party owns, operates, and maintains the solar system. The building owner hosts the system and agrees to purchase the electricity it generates at a predetermined rate—typically lower than utility rates—for a defined period, often 15 to 25 years.

Benefits:

• • No upfront capital investment required by the building owner
  • Immediate savings on energy costs
  • System performance is the responsibility of the system owner, and reducing operational risk
  • Often off-balance-sheet, preserving borrowing capacity

Considerations:

• • Less control over system design and operations
  • Long-term commitment to purchase power
  • May require rooftop or land lease agreements

Brightcore Energy facilitates PPAs for clients seeking budget-neutral clean energy transitions. We structure agreements to ensure transparency, performance guarantees, and predictable savings over time. Contact us to learn more.

Types of Contracts: Solar Site Lease

In a solar site lease, the property owner leases space—typically a rooftop, parking lot, or unused land— to a solar developer. The developer installs and operates the system. The energy produced is sold to the site owner, the utility, off-takers in the service area via a community solar model, or a combination of. The property owner receives lease payments in return for hosting the system.

Benefits:

• • Ability to monetize non-revenue producing assets
  • Revenue generation through lease payments
  • No upfront cost or operational responsibility
  • Supports sustainability and ESG goals by enabling clean energy production

Considerations:

• • The energy may not directly power the host building
  • Lease terms must be carefully negotiated to protect long-term site use
  • May require zoning and permitting adjustments

This model is especially attractive for institutions with large, underutilized land areas or rooftops who are not ready to make direct investments in solar.

Types of Contracts: Customer Owned

For clients with available capital or financing capacity, customer-owned solar systems offer the highest degree of control and long-term financial benefit. In this model, the building owner finances the purchase and installation of the system and assumes full ownership, operation, and maintenance.

Benefits:

• • Maximum financial return through energy savings and incentives
  • Greater control over system design, placement, and operation
  • Ownership of all Renewable Energy Credits (RECs)
  • Opportunity to leverage federal tax credits, local, and state incentives

Considerations:

• • Requires upfront investment or financing
  • Owner is responsible for maintenance and performance
  • Involves internal management of installation and monitoring

Conclusion

Choosing the right solar contract structure is a critical step in any clean energy strategy. Whether the goal is to minimize upfront costs, increase asset value, or meet ESG targets, contract versatility is what makes solar feasible across a wide range of organizations and property types.

At Brightcore Energy, our role goes beyond installation. We assist our clients help them understand the options and select the model that aligns with their financial, operational, and sustainability goals. From PPAs and site leases to customer-owned systems, we build partnerships that ensure clean energy adoption is both effective and enduring.

As the solar industry continues to mature, the range of contract options will only grow. With the right partner—and the right contract—solar can become a defining asset in your building’s long-term value and environmental impact.