Equipment Related to Power Purchase Agreements and Fuel Delivered to Customers, Net

12 Months Ended

Dec. 31, 2024

Equipment Related to Power Purchase Agreements and Fuel Delivered to Customers, net

Equipment Related to Power Purchase Agreements and Fuel Delivered to Customers, net

10. Equipment Related to Power Purchase Agreements and Fuel Delivered to Customers, Net

Equipment related to power purchase agreements and fuel delivered to customers, net, as of December 31, 2024 and 2023 consisted of the following (in thousands):

	December 31,		December 31,
	2024		2023
Equipment related to power purchase agreements and fuel delivered to customers	$	179,602	$	139,651
Less: accumulated depreciation		(35,530)		(28,390)
Equipment related to power purchase agreements and fuel delivered to customers, net	$	144,072	$	111,261

As of December 31, 2024 and 2023, the Company had deployed assets at customer sites that had associated PPAs. These PPAs expire over the next one to ten years. PPAs contain termination clauses with associated penalties, the amount of which cause the likelihood of cancellation to be remote.

Depreciation expense is $9.3 million, $8.0 million and $6.9 million for the years ended December 31, 2024, 2023 and 2022, respectively.

The Company recorded an impairment charge of $1.6 million, $0.2 million and $1.5 million for the years ended December 31, 2024, 2023 and 2022, respectively.