Best Solar Company in Banning, CA

A solar power purchase agreement (PPA) is a financial agreement in which the third-party solar developer is the one who is the one who owns, manages and manages the solar photovoltaic (PV) system, and a customer is obligated to purchase power from the system at a fixed price per kilowatt-hour (kWh) for a specific period of time. Solar PPAs are a common method for schools, businesses, and other organizations to make the switch to solar at a low to no upfront cost. Although solar PPAs can offer significant financial benefits, it is essential to realize that you’ll be losing certain benefits which come with having your own solar PV system. For instance, you won’t not be able to take advantage of tax credits for solar or other incentives, and you will not be allowed for selling excess electricity to the grid. In addition, you may be susceptible to price increases every year and fees for early termination should you opt to end the agreement prior to the expiration of the term. This is why it’s crucial to consider all the advantages and disadvantages of solar PPAs prior to signing one.