Power Purchase Agreements

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Why would I finance my solar project with a power purchase agreement (PPA)?

A Power Purchase Agreement (PPA) lets businesses access clean, low-cost solar energy with no upfront investment, shielding them from rising utility prices while enhancing sustainability, reputation, and financial savings.

What is a Solar Power Purchase Agreement (PPA)?

A PPA is a contract where a third-party developer installs, owns, and maintains a solar energy system on your property, and you purchase the generated electricity at a fixed, typically lower, rate than your utility price.

How much does a PPA cost upfront?

There are no upfront costs for a PPA. The solar provider covers installation, equipment, and maintenance, while you simply pay for the electricity generated by the system.

How much can I save with a PPA?

Savings vary based on your location, utility rates, and PPA terms, but customers typically pay a lower price per kilowatt-hour (kWh) compared to traditional utility rates, often with built-in price stability.

What happens at the end of the PPA term?

At the end of the contract (typically 20-25 years), you usually have the option to renew the agreement, purchase the system at fair market value, or have it removed at no cost.

Who is responsible for system maintenance and repairs?

The solar provider owns and maintains the system, handling all repairs, monitoring, and maintenance at no cost to you.

Will a PPA affect my roof or property?

The provider ensures a professional installation that minimizes impact on your roof, often including warranties for any potential damage. Ground-mounted systems and car ports are also options for some customers.

Can I still use grid electricity if needed?

Yes, your property remains connected to the grid, allowing you to draw power from the utility when solar production is low, such as at night or on cloudy days.

What happens if I sell my property during the PPA term?

PPAs are typically transferable to the new owner, or you may have the option to prepay or buy out the contract. Most providers help facilitate a smooth transfer process.

Are there any tax benefits or incentives for me as a PPA customer?

No, since the solar provider owns the system, they receive tax credits and incentives, which allow them to offer you a lower energy rate. If you prefer to capture these incentives, you may want to consider solar ownership instead.

How do I qualify for a PPA?

Eligibility depends on factors like your location, energy usage, credit approval, and available roof or land space for installation. We can assess your property and determine if a PPA is a good fit.