BAM Energy, BAM FM’s energy division, has funded the installation of a 140.25 kWp PV system at the new Three Rivers Academy in Surrey, which is currently being built by BAM Construction. The agreement has released a significant sum from the construction budget that the client can spend on other critical areas of the build.
The cost of installing and operating the PVs is recovered through a Power Purchase Agreement (PPA) – a separate contract to the construction contract, by which the customer (The Howard Partnership Trust) agrees to buy power generated by the PVs through BAM Energy for the next 20 years.
The PPA underwent scrutiny by the Education and Skills Funding Agency (ESFA), which had to ratify and approve the agreement.
“The benefit to the customer is two-fold,” explains Reid Cunningham, Director – BAM Energy. “They meet the renewable energy target but save on the upfront capital costs by buying the power that the PVs supply from their normal operating costs – and the fixed unit cost is competitive against grid power costs.”