Frequently Asked Questions
Project Scoping
The feasibility of any power generation asset depends on several factors, including technology operational characteristics, natural gas availability, available space, energy consumption patterns, renewable energy goals, technology costs, and the regulatory environment. Our team evaluates these aspects to determine the optimal energy solution for your specific needs.
We take a comprehensive approach by analyzing energy consumption patterns, available space, regulatory constraints, and financial considerations. We explore various technologies—such as photovoltaics, batteries, wind turbines, natural gas turbines, combustion engines, and fuel cells—to match the best option with your objectives.
Energy consumption patterns help determine system sizing, storage needs, and overall economic feasibility. A high and consistent load may justify baseload generation technologies, while fluctuating demand may benefit from hybrid solutions that incorporate energy storage.
Optimization involves choosing the right mix of technologies, leveraging financial incentives, incorporating energy storage, and designing systems that maximize efficiency while minimizing costs.
Regulations can significantly impact technology selection, project costs, and interconnection feasibility. We evaluate local, state, and federal policies to ensure compliance and identify incentives that could enhance project viability.
If natural gas infrastructure is available, technologies such as gas turbines or combustion engines may be viable options. However, if access is limited, we explore renewable alternatives like solar, wind, and battery storage.
Absolutely. We align our project scoping process with your sustainability objectives by incorporating renewable energy technologies and storage solutions to maximize clean energy integration and carbon reduction.
The required space varies by technology. For instance, solar PV requires significant rooftop or ground area, while fuel cells and batteries have a smaller footprint. Our team assesses available space to recommend the best fit.
Understanding Cost & Financing
Technology costs vary depending on equipment, installation, and operational expenses. Additionally, factors such as capital markets, financing options, and long-term energy price trends influence the overall economic viability of a project.
The good news is Pacifico will evaluate the best options and leverage all available incentives and funding for your projects. By entering into an Energy Services Agreement (ESA) or Power Purchase Agreement (PPA) with us, all you will experience is a lower energy bill resulting in savings.
We provide insights into financing options, including power purchase agreements (PPAs), tax credits, and investment incentives, to help reduce upfront costs and improve project economics.
Pacifico will ultimately capture the value of these project incentives and pass along this value to you in the form of cheaper energy and energy savings.
Power
Generation Contracting
Power generation contracting involves long-term agreements where Pacifico Energy invests in and operates onsite power generation assets, delivering electricity directly to your facility. This includes Energy Services Agreements (ESAs) and Power Purchase Agreements (PPAs). This approach reduces reliance on utilities, provides cost stability, and eliminates the need for large upfront capital investments.
Pacifico assumes most operational risks, including system maintenance and performance. However, customers may have limited liability related to site access, infrastructure modifications, or damages due to negligence. These details are outlined in the liability section of the contract.
Our contracts are tailored to each customer’s energy needs and typically include key terms such as contract term length, pricing structure, liability provisions, production guarantees, annual escalators, termination values, buy-out options, equipment warranties and insurance requirements.
Contract terms vary depending on the project scope and customer preferences. Typical terms range from 20 to 30 years, ensuring long-term price stability and operational reliability. You are also entitled to options to extend your contract at the end of the contract term.
Pacifico's Asset Management team will actively monitor and maintain the power generation assets to ensure optimal performance for the entire project lifetime. Our contracts include production guarantees, scheduled maintenance, and rapid response to system issues, ensuring continuous and reliable energy delivery.
We include production guarantees and availability guarantees in our contracts where applicable, ensuring that the system generates a minimum level of power and performance. If production falls below agreed-upon thresholds, Pacifico may be required to compensate for shortfalls or make necessary improvements to meet performance standards.
Our contracts typically require insurance provisions to cover risks such as property damage, business interruption, and equipment failure. Pacifico maintains comprehensive insurance for the power generation assets, while customers may need to carry general liability coverage.
Understanding Contract Terms
Pricing is influenced by factors such as technology type, project costs, financing structure, and operational risks. We offer competitive pricing structures that can include fixed-rate contracts, indexed pricing, or hybrid models that align with your energy cost objectives.
Yes, some contracts include annual escalators, which account for inflation, operational costs, and market conditions. These escalators are typically structured to provide long-term cost predictability while maintaining competitive rates compared to utility pricing. In most cases, the annual escalator is a significant hedge against varying and volatile rate increases against increasing utility rates, providing you the control and ability to predict your ongoing expenses, whereas utilities can increase your rates at their discretion.
Early termination is possible but typically involves termination values outlined in the contract. These values account for the remaining project investment, equipment costs, and financing obligations. We also offer buy-out options that allow customers to take ownership of the power generation assets under specified conditions.
Buy-out options enable customers to purchase the power generation system at predetermined milestones in the contract. The pricing is usually based on a depreciation schedule, remaining contract term, and system performance.
At the end of the contract, customers typically have three options:
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Renew the agreement under updated terms
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Exercise a buy-out option and take ownership of the system
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Decommission the system if continued operation is not needed
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Project
Development
The project development process includes several critical stages:
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Site Selection – Identifying the best location based on energy demand, land availability, and infrastructure.
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Land Negotiation and Contracting – Securing land rights through purchase or lease agreements.
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Grid Connection Studies – Assessing grid capacity and interconnection feasibility.
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Environmental Studies – Conducting impact assessments and compliance evaluations.
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Permitting – Navigating local, state, and federal approvals.
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Initial Design & Analysis – Developing system layouts and performance modeling.
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Site Engineering – Conducting geotechnical and civil engineering assessments.
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Equipment Procurement – Selecting and sourcing technology components.
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Power Marketing & Contracting – Securing agreements with energy buyers or off-takers.
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We evaluate multiple factors, including land availability, proximity to energy demand, access to transmission infrastructure, permitting feasibility, and environmental impact. Grid connection studies and land negotiations are also key steps in site selection.
We develop conceptual designs that align with project goals, considering land characteristics, energy output optimization, and infrastructure requirements. Our site engineering process includes geotechnical assessments and system layout finalization.
Where applicable, Pacifico works with landowners to secure access rights, leases or purchase agreements, ensuring favorable terms that align with long-term project goals. We handle zoning considerations, easements, and site access requirements to enable smooth project execution.
Environmental studies assess potential impacts on wildlife, water resources, air quality, and surrounding communities. We conduct comprehensive evaluations to meet regulatory requirements and implement sustainable development practices.
The permitting process involves obtaining approvals from local, state, and federal agencies. This includes zoning permits, environmental clearances, interconnection approvals, and construction permits. Pacifico manages the entire process to streamline project timelines.
Grid connection studies determine whether the local electricity grid can support new power generation. These studies analyze grid capacity, interconnection feasibility, upgrade requirements, and compliance with utility regulations to ensure reliable energy integration.
Under circumstances when the utility cannot manage new power capacity, Pacifico can work with you to design an off-grid system, including islanding-capable microgrids and prime power solutions.
Understanding Timelines and Contracting
The timeline varies depending on project size, permitting complexity, and interconnection requirements. Typically, project development can take 12-36 months, with early-stage assessments and approvals requiring the most time.
We source high-quality equipment based on technology suitability, cost-effectiveness, supplier reliability, and long-term operational efficiency. Procurement planning ensures seamless integration with project timelines and regulatory requirements.
Power marketing & contracting involve securing agreements with utilities, businesses, or other energy buyers to sell generated electricity. This includes negotiating power purchase agreements (PPAs), off-take agreements, and financial structuring to ensure project profitability and savings for you.
Financing
Pacifico's Structured Financing Capabilities
Pacifico provides a range of structured finance options, including:
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Power Purchase Agreements (PPAs) – A long-term contract where customers pay for electricity generated on-site without owning the asset.
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Debt Financing – Loans or bonds secured against project cash flows.
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Tax Equity Financing – Investors provide capital in exchange for tax incentives related to renewable energy.
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Lease Structures – Customers lease equipment instead of purchasing outright.
Under a PPA, Pacifico develops, owns, and operates the power generation asset, while the customer agrees to buy the generated electricity at a fixed or variable rate over a set term. This allows businesses to access onsite power without upfront capital investment and benefit from predictable energy costs.
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Structured finance refers to customized financial solutions that enable the development of onsite energy projects with minimal upfront costs. This includes financing mechanisms such as power purchase agreements (PPAs), tax equity investments, debt financing, and capital markets funding to make projects financially viable.
Tax incentives, such as the Investment Tax Credit (ITC) and Production Tax Credit (PTC), help reduce project costs by allowing investors or developers to claim tax benefits. Tax equity financing enables Pacifico to monetize these incentives, making projects more affordable for end users.
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Debt Financing involves borrowing funds, typically through loans or bonds, to finance a project, with repayment based on future revenues.
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Tax Equity Financing allows investors to fund projects in exchange for tax benefits, making it attractive for renewable energy development.
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Capital markets provide access to institutional investors, green bonds, and securitized energy assets, allowing large-scale projects to secure funding at competitive rates.
Understanding the Economics
Pricing is influenced by:
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Project capital costs (equipment, installation, and permitting)
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Financing structure (debt vs. equity)
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Energy production guarantees
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Market interest rates and creditworthiness
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Tax incentives and depreciation benefits
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Yes. Through structured finance options like PPAs, leases, and third-party ownership models, businesses can benefit from onsite power generation without large upfront costs.
Structured finance solutions, such as fixed-rate PPAs and optimized debt structures, provide cost predictability and protection from utility rate increases, ensuring long-term financial benefits for customers.
EPC & Project Management
EPC stands for Engineering, Procurement, and Construction, representing the full lifecycle of designing, sourcing, and building power generation systems. Pacifico Energy provides turnkey EPC services to ensure efficient and high-quality project execution.
The EPC process consists of:
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Engineering – Conducting feasibility studies, system design, and site planning.
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Procurement – Sourcing high-quality equipment, materials, and components.
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Construction – Managing site preparation, installation, commissioning, and testing.
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Our engineering services include system design, grid integration studies, structural analysis, electrical engineering, and site-specific feasibility assessments to optimize project performance.
Project management is essential for coordinating timelines, budgets, contractor performance, permitting, and quality control to ensure projects are delivered on time and within scope.
We oversee the entire construction process, from site preparation to system commissioning, ensuring projects meet safety, quality, and regulatory standards. Our experienced teams handle civil, mechanical, and electrical installations for seamless execution.
We leverage strong supplier relationships and global sourcing to secure cost-effective and high-quality components, including solar panels, inverters, energy storage systems, turbines, and balance-of-plant equipment.
Equipment selection is based on:
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Technology compatibility and performance
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Cost-effectiveness and total lifecycle value
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Supplier reliability and warranty offerings
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Project location and environmental conditions
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We implement strict safety protocols, compliance with industry standards, and rigorous quality assurance through continuous inspections and testing at key milestones.
Understanding the Economics
A turnkey EPC approach streamlines the development process by providing a single point of accountability, reduced project risk, cost efficiency, and faster project completion, ensuring a seamless transition from concept to operation.
Our EPC services align with financing models such as Power Purchase Agreements (PPAs), capital leases, and structured finance, ensuring project feasibility while minimizing capital expenditures for customers.
Operations & Asset Management
O&M and asset management involve the ongoing operation, servicing, and optimization of onsite energy assets to ensure reliable performance, maximize energy output, and extend asset lifespan.
Our comprehensive O&M services include:
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Routine and preventive maintenance to ensure system reliability
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Real-time monitoring and diagnostics for performance optimization
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Corrective maintenance and repairs to minimize downtime
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Compliance and regulatory reporting to meet industry standards
Preventive maintenance includes scheduled inspections, equipment testing, component replacements, and software updates to reduce the risk of unexpected failures and downtime.
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Asset management focuses on long-term optimization, financial performance, and risk mitigation. It includes data analysis, performance benchmarking, lifecycle cost management, and strategic upgrades to ensure maximum return on investment.
We manage all necessary environmental, safety, and operational compliance requirements, including emission tracking, grid interconnection standards, and industry certifications to meet legal and contractual obligations.
Pacifico provides O&M and AM services for your project for the full 20-30 year lifetime of the asset.
We can also offer third-party O&M services for existing power generation assets, providing expert management, maintenance, and performance optimization even if Pacifico did not develop the project.
Understanding System Performance Metrics & Guarantees
We use real-time monitoring software and advanced analytics to track system performance, detect anomalies, and proactively address potential issues before they impact operations.
Key performance indicators (KPIs) include:
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Energy production vs. expected output
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System availability and uptime
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Capacity factor and efficiency ratings
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O&M cost per unit of energy produced
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Equipment failure rates and maintenance response times
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We use predictive maintenance, technology upgrades, and financial modeling to maximize asset value, ensuring long-term operational efficiency and cost-effectiveness.
If performance falls below agreed-upon levels, we conduct root cause analysis, implement corrective actions, and optimize system settings to restore efficiency. Some contracts may include performance guarantees with compensation for underperformance.
Distributed Generation
Starting a project
Pacifico will work with you to find the best suited solution for your facility. In all cases, our equipment and components are under extended warranties. Plus, we provide ongoing maintenance to ensure peak performance at the estimates promised during the project’s design and contracting stages.
Pacifico’s long-term project operation and ownership structure ensures our alignment with your need for top performance for the life of the asset.
Yes. We offer flexible contracting options, including: PPAs, energy services agreements for batteries (ESAs), solar and equipment leases, and direct purchase options, all tailored to meet your business’s needs.
By generating your own solar energy, you use less power from the grid, which lowers your monthly utility bills. Excess energy can be sent back to the grid, earning you credits or payments through net metering.
Additionally, batteries can be automated to reduce your facility's peak usage, reducing demand charges. They can also enable you to sell excess energy back to the utility grid.
Most grid-tied systems automatically shut down during outages for safety. However, Pacifico can integrate battery storage or backup generators to keep your operations running when the grid is down.
Understanding cost & financial reward
The ROI for adopting solar and storage can be evaluated qualitatively and quantitatively.
Qualitative ROI includes benefits like meeting sustainability goals and gaining customers who prefer eco-friendly providers.
Quantitative ROI is measured differently depending on whether or not you commit to a PPA or are buying the energy system outright.
PPAs mean immediate ROI and energy savings, since Pacifico covers upfront costs and finances the system over time. This allows you to pay for energy at a lower rate with savings passed on through mechanisms like tax credits and REC monetization.
Buying the energy system outright offers a payback period influenced by factors like upfront costs, location, utility rates, and potential savings, which can vary.
Yes. Many businesses qualify for federal and state tax credits, rebates, and other incentives. Solar energy systems also generate renewable energy certificates (RECs). Pacifico’s team can help you identify and apply for these programs to maximize your investment.
Energy Storage
Not at all. Our systems can be scaled up or down to meet the demands of everything from small offices to large industrial complexes. The key is tailoring the system to your energy needs.
In most cases, yes. Remaining connected gives you the flexibility to draw power when you need it and send excess energy back when you’ve got a surplus. It’s the best of both worlds—greater independence while keeping that safety net.
The timeline depends on factors like the size of your facility and how much existing infrastructure is in place. However, our experienced team handles everything—from permitting to final commissioning—so you can go live as quickly and smoothly as possible.
Microgrid & Prime Power
Not at all. Our systems can be scaled up or down to meet the demands of everything from small offices to large industrial complexes. The key is tailoring the system to your energy needs.
In most cases, yes. Remaining connected gives you the flexibility to draw power when you need it and to send excess energy back when you’ve got a surplus.
This parallel connection also means you can keep running smoothly even if the grid experiences an outage. It’s the best of both worlds—greater independence while keeping that safety net.
The timeline depends on factors like the size of your facility and how much existing infrastructure is in place. However, our experienced team handles everything—from permitting to final commissioning—so you can go live as quickly and smoothly as possible.
Yes. Pacifico designs systems tailored to your energy needs, ensuring uninterrupted power for your operations. We can design systems to include solar, battery storage, and traditional fuel backup generators, etc., to best serve your power needs.
Absolutely. Microgrids allow you to generate and store energy onsite, reducing reliance on more costly energy from the utility grid. Fully off-grid systems eliminate utility bills and reduce reliance on external energy sources, leading to significant savings over time.
Pacifico can integrate backup generators into your off-grid system to ensure continuous power during extended low-sunlight periods or increased energy demands.
Utility-Scale Solar
Utility-scale solar projects benefit from economies of scale, making the levelized cost of electricity (LCOE) among the lowest of all energy sources. With no fuel costs and minimal ongoing maintenance, solar can provide long-term price stability and hedge against fossil fuel price volatility.
Governments and utilities offer tax credits, grants, renewable energy credits (RECs), and favorable financing options to make solar projects more attractive. In the U.S., the Investment Tax Credit (ITC) and production incentives significantly reduce upfront costs.
Solar energy reduces carbon emissions, lowers reliance on fossil fuels, and supports sustainability commitments for corporations and utilities. Many businesses and municipalities use solar to meet renewable portfolio standards (RPS) and net-zero targets.
Developing solar projects boosts local economies by creating jobs in construction, engineering, operations, and maintenance. It also generates local tax revenue and provides long-term lease income for landowners.
Understanding cost & financial reward
The payback period for a utility-scale solar project typically ranges from 5 to 10 years, depending on factors like capital costs, electricity prices, tax incentives, and financing structures. With the Investment Tax Credit (ITC) and declining equipment costs, many projects achieve faster ROI.
Unlike fossil fuel-based power, solar energy has no fuel costs, meaning electricity prices remain stable and predictable over decades. Power Purchase Agreements (PPAs) with utilities or corporations provide guaranteed revenue streams, ensuring a steady cash flow and long-term financial returns.
Utility-Scale Wind
Pacifico collaborates with local stakeholders, shares project updates, and addresses concerns early. This approach fosters trust, helps secure permits, and ensures wind developments benefit surrounding areas.
Our team selects equipment tested for harsh climates, ensuring minimal downtime. Regular inspections and response strategies reduce risks, safeguarding the technology and surrounding communities from severe weather impacts.
Government subsidies and tax credits can offset development expenses, making utility wind projects more attractive to investors. Pacifico leverages these incentives to optimize budgets and deliver competitive energy rates. Long-term purchase agreements enhance financial stability, ensuring predictable returns while fostering a clean energy landscape.