An Austin, Texas, based company, 7X Energy, is introducing its new SolarBlocks option allowing companies to purchase solar electricity without the lengthy requirements of most power-purchase agreements. The new option, a block-and-index option, offers companies a clean-energy purchasing product in independent system operator (ISO) markets that the company said balances flexibility and stability.
“Companies told us that they want to simplify how they procure renewable energy,” said Clay Butler, president and CEO of 7X Energy. “Many companies are accustomed to purchasing power through an energy retailer and SolarBlocks supports that model. The retailers can work with corporations to determine the right amounts of energy to procure through blocks and the wholesale market to reduce their energy spend and mitigate risks from fuel pricing volatility. Customers will continue their billing arrangements with their preferred retailer.”
Most block power purchase products are supplied by numerous generation sources in an energy buyer’s local grid, according to 7X Energy. The company said its new offering is the first solar-powered block-and-index power purchasing product it’s developed.
“SolarBlocks is a compelling alternative to a traditional PPA, and a win all around for companies,” Butler said. It’s also the latest in new ways for companies to purchase renewable energy. In some cases companies have opted to create new programs to develop or purchase their own renewable energy installations, like Google.
The product offers commercial and industrial energy buyers in an ISO market, who are able to purchase blocks of generated energy for contract term as short as eight years. The product offers fixed rates for energy and the contract is much shorter a term than most power-purchase agreements, which can have 20-year terms.
“This strategy works exceptionally well for corporate buyers,” Butler contended. “Companies typically consume the most energy during the day, when solar is the least expensive energy available. At off-peak times, when solar is unavailable, wholesale pricing can be competitive. It’s the best of both worlds.”
The company also said that since 7X Energy will build solar farms for the SolarBlocks program the SolarBlocks customers represent new construction, companies can claim receive renewable energy certificates (RECs) that their solar block generates.Tweet