A solar power purchase agreement (PPA) offers the financial benefits of solar without the initial financial burden of purchasing the system.
When you participate in a solar PPA, a solar company owns the panels on your home. You simply pay monthly for the power those panels produce.
Just like owning the panels outright, a power purchase agreement saves you money on your electric bill. The company that owns the panels takes advantage of solar incentives in order to offer you the power at a lower price.
Here’s how a solar PPA works: you’ll pay for the power produced at a set price per kilowatt-hour. This price is determined by the company based on the system’s expected annual output.
You don’t need to worry about filing for tax credits, receiving rebates, keeping up with maintenance, paying upfront costs, or filling out paperwork. You’ll get the same perks as you would if you purchased the panels, but without the added benefits of ownership, like increased home value.
Plus, you keep paying for each year of the power purchase agreement, whereas if you owned the system outright, your costs could’ve been reduced to $0 each month in as little as 8 years.