Ppa solar energy

What is a solar PPA?

A solar PPA is a type of arrangement in which the homeowner allows a company to install a solar system on the property. Instead of leasing or purchasing the system, the owner only pays for the power they use. PPAs range in length, but they can be as long as the lifetime of the panels on the home.

What is a solar power purchase agreement (solar PPA)?

With a solar power purchase agreement (solar PPA), you contract with a solar developer that pays for, installs, and maintains a solar system on your property. The system could include ground-mounted, rooftop, or carport solar panels (or any combination thereof), and it could include an energy storage system.

Is a solar PPA right for You?

Here’s some information to help you decide if a solar PPA is right for you! With a PPA, a solar company installs the solar system on your roof and covers the entire installation cost, allowing the homeowner to pay little or no money down.

How much does a solar PPA cost?

Most solar PPAs offer a $0-down way to go solar: you won't start paying until the solar panel system starts generating electricity for your home. Because of this, PPAs are a popular option for homeowners who don't want to invest money upfront.

Why are solar PPAs so popular?

Solar PPAs are popular because they can be structured with minimal upfront capital costs to the business owner. With a solar power purchase agreement, the developer takes on the majority, if not all of the upfront costs associated with designing and constructing the solar system. In fact, most PPA customers will be cash flow positive on day one.

Do I need a PPA to buy a solar system?

With a PPA, you won't own your solar panel system. This means that solar incentives you'd be eligible for with a solar loan option (like the federal investment tax credit (ITC), solar renewable energy certificates, and any local rebates) go straight to the solar company/financier that made the upfront investment in the system.