Best Solar Company in Lomita, CA

An agreement to purchase solar energy (PPA) is an agreement for financial transactions in which a third-party solar developer is the one who owns, manages and maintains the solar photovoltaic (PV) system, and a customer accepts to buy power from the system at an agreed-upon price per kilowatt hour (kWh) over a specified duration. Solar PPAs are a common method for schools, businesses and other entities to switch to solar power with minimal or no upfront costs. While solar PPAs can provide substantial economic benefits, it’s important to understand that you will be relinquishing certain benefits which come with having your own solar PV system. For instance, you won’t not have the opportunity to take advantage of solar tax credits or other incentives, and you will not be able to sell excess power to grid. Additionally, you could be susceptible to price increases every year, as well as fees for early termination if you choose to cancel the agreement prior to the expiration of the contract. This is why it’s crucial to consider all of the advantages and disadvantages of solar PPAs before entering into one.