ZBB Energy Signs Power Purchase Agreement With 350+ Unit Condominium Complex in Honolulu

MILWAUKEE, WI--(Marketwired - Jan 6, 2015) - ZBB Energy Corporation (NYSE MKT: ZBB), a leading developer of innovative energy management systems solutions serving the utility, commercial and industrial building markets, today announced the signing of a power purchase agreement (PPA) through a wholly-owned Delaware limited liability company, with a Condo Association of Apartment Owners (AOAO) to provide electricity to a 350+ unit condominium complex in Honolulu, Hawaii. The multi-million dollar two phase project, utilizing solar photovoltaics in conjunction with ZBB Energy technologies, is expected to take up to 24 months to complete. The PPA is projected to result in $2 million in net energy savings for the AOAO during the 20-year term of the agreement. 

The Power Purchase Agreement provides for the AOAO to maximize savings from an installation of solar PV, energy storage and energy management, along with the assurance that, in the event of a grid outage, ZBB can functionally provide for use of "customer-side-of-the-meter" solar and energy storage to continue providing electricity. It is expected that the average savings for the AOAO in the first year will exceed 15% and the savings will continue to grow in future years as the price of grid electricity increases. In addition, ZBB's system solution will substantially reduce CO2 emissions and provide increased customer reliability. ZBB's energy management system solutions are expected to change the market in Hawaii based upon their efficiency, cost savings, improved environmental impact and simplicity.

For ZBB, the Power Purchase Agreement is a unique contracting instrument that provides a vehicle for sales of ZBB equipment and an opportunity for either a long-term investment, or the sale of the PPA to interested third party investors. This particular PPA provides ZBB, or a third party purchaser of the PPA, an opportunity to capitalize on certain state and federal investment tax credits and other incentives that maximize the PPA's long-term return. ZBB is working on several additional PPA type agreements designed to allow a bundling of these investments that would be attractive to high-yield income investors. ZBB will provide more details on the specific structure in subsequent press releases.