Under a new partnership between PowerOptions and SunEdison, nonprofits—including hospitals, schools and universities—and governments will have access to low-cost solar through power-purchase agreements or net-metering arrangements.

Under the agreement, customers of PowerOptions, an energy buying consortium, will have access to solar with no upfront costs through agreements with SunEdison.

The partnership will allow PowerOptions customers to install solar rooftops, ground-based systems, parking-lot canopies and other properties they own or operate.

“Many of our municipal members are looking at putting solar on their landfills,” said PowerOptions spokesperson Liam Sullivan.

The solar program is based on PowerOptions’ electricity and natural gas supply programs where the organization establishes terms and conditions for utility projects with its customers.

Since it has more than 500 customers, it was able to work with SunEdison on their behalf for lower rates on electricity.

SunEdison lowers the electric rates by sharing the savings that the nonprofits could have qualified for through tax breaks if they were for-profit companies that purchased or financed a system.

Prices for the power produced under such contracts will be lower than the current cost of electricity that such entities are paying, according to Sullivan.

“The proposals we’ve seen already are much lower than the current price of electricity,” he said. “When you’re going out 20 years, it’s going to be a very good deal.”

PowerOptions chose SunEdison as its partner after issuing a request for proposal. One of the reasons it selected the company is because it offered no size limit for the systems PowerOptions customers could install—from 10 kilowatts to multi-megawatt, municipal-sized systems, according to Sullivan.

Enrollment in the program is unlimited and ongoing for the entities.

At this point, no nonprofits or governments have signed an agreement for such a system, Sullivan said.

SunEdison and PowerOptions only began sending proposals to the companies a few days ago.

Still, towns like Woburn, Mass., are already showing interest in the offering.

At the unveiling of the new agreement, Woburn Mayor Scott Galvin said the town was committed to solar development and planned to learn more about how it could help the city meet its energy goals.

Image courtesy of NREL.