Best Solar Company in La Palma, CA

The solar power purchase contract (PPA) is an agreement for financial transactions in which the third-party solar developer is the one who is the one who owns, manages and maintains the solar photovoltaic (PV) system, and a customer accepts to buy energy from the system at an agreed-upon price per kilowatt hour (kWh) for a specific period of time. Solar PPAs are a common option for schools, businesses and other entities to switch to solar power with minimal or no upfront costs. While solar PPAs may provide significant financial benefits, it is essential to realize that you will be relinquishing certain benefits that come with owning your solar PV system. For example, you will not be able to take advantage of solar tax credits or other incentives, nor will you be in a position transfer excess energy back to grid. Additionally, you could be in the midst of annual price hikes and fees for early termination should you opt to end the agreement before the end of the agreement. This is why it’s essential to take a careful look at all the advantages and disadvantages of solar PPAs prior entering into one.