Power Purchase Agreement Solar Panels

A solar ppa is a long term agreement between you and a solar provider and or installer to lease your roof in return for a lower energy bill.

Power purchase agreement solar panels.

Be mindful that many companies offer fairly low starter rates for example 0 155 kwh with no money down if you qualify but the contract includes an annual rate escalator usually between 1 2 9 per year for the entire 20 year ppa. Pay a predetermined price for every kilowatt hour of electricity your solar panels generate. A solar power purchase agreement ppa is a financial agreement where a developer arranges for the design permitting financing and installation of a solar energy system on a customer s property at little to no cost. Simply put a solar company or ppa financier covers all the costs to buy solar equipment and install it on your roof.

A ppa allows your business to reap the benefits of clean energy through a solar pv system without any financial outlay to preserve your capital. In fact a ppa is a lease option. A power purchase agreement ppa is a contract to buy power from a renewable generator. The main differences between the two are that at the end of your contract ball and chain you have the ability to purchase the system at a fair market value price once your 20 year agreement ends.

What is a solar ppa power purchase agreement. Solar ppa power purchase agreement power purchase agreements have become one of the most popular methods of realising the benefits of solar energy for power consumers. With a solar ppa instead of paying to rent the solar panel system you agree to purchase the power generated by the system at a set per kwh price. Let us take care of the rest.

With a solar ppa we install solar panels on your home and sell you the solar power it produces at a lower rate than what your utility can typically provide. Financing a solar panel system with a power purchase agreement otherwise known as a ppa is similar to leasing or renting a solar panel system. Ppas are particularly important in the renewable sector and are widespread in energy markets across all types of technology. A power purchase agreement is simply an agreement to purchase power at an agreed upon price kwh.

A reputable solar company offering you a ppa should very clearly inform you what the price per kwh is for your agreement. The installer will typically provide the panels installation and maintenance at zero cost to the homeowner and in return the provider becomes your new utility provider. A solar ppa is very similar to the solar lease option. Simply put you get clean solar electricity at a predictable rate.