Solar PPA (Power Purchase Agreement)
What is the best part about going solar today? While most people will immediately cite the reduction in CO2 emissions that will result (and that's also good), it's actually that you can do so without investing anything upfront. Thanks to innovative financing methods such as solar PPA, you can easily go solar today for zero down, and also start saving money from day one!
What Is Solar PPA?
Even though the cost of solar photovoltaic cells have been falling pretty fast, it was the introduction of financing methods such as solar leasing and Power Purchase Agreement that altered the residential solar market in a big way.
The idea here is simple -- leverage investor resource and tax equity to purchase a solar power system for homeowners, which is then offered to them at no upfront cost. The owner of the system (the company) gets to keep all the incentives, rebates and tax credits.
The leasing company also runs and maintains the system while the homeowner purchases power from them at a fixed monthly rate. The monthly payment is typically far lower than what the homeowner is paying to the utility, so it's a win-win for everyone.
Difference Between a Solar Lease and Solar PPA
A lease and a power purchase agreement are exactly the same except for one key difference. In both you get to keep a solar system for zero down, and both come with monthly repayments. However, while in a solar lease you have to pay a fixed amount every month regardless of how much energy the system produces, in a PPA, you pay per kWh of power your system generates.
Benefits of Solar Power Purchase Agreement
A PPA is ideal for people who do not want to tackle the heavy upfront cost of going solar, and those who do not want to, or cannot utilize state incentives such as the 30% Federal ITC (Income Tax Credit).
You can enjoy a reduced and fixed electricity bill for the duration of the lease which is usually between 20 and 25 years, while the leasing company worries about keeping the system in good shape.
If you want to find out more about how a solar PPA can work for you, then start by getting a free solar quote from us. It will only take a few minutes, and it will help you understand how much you can save with a solar PPA.
What Can You Save With Solar?
With no end in sight for soaring electricity rates, your switch to solar will secure affordable power for your home & family for years to come.