Best Solar Company in Rancho Mirage, CA

The solar power purchase contract (PPA) is a financial agreement in which the third-party solar developer is the one who owns, operates, and maintains its solar photovoltaic (PV) system and a client is obligated to purchase energy from the system at a fixed price per kilowatt-hour (kWh) over a specific period of time. PPAs with solar are a popular method for schools, businesses and other entities to make the switch to solar at a low or no upfront costs. Although solar PPAs can offer substantial financial benefits, it is crucial to be aware that you’ll be losing certain benefits which come with having your solar power system. For example, you will not be able to avail of solar tax credits and other benefits, nor will you be able transfer excess energy to grid. Furthermore, you may be susceptible to price increases every year, as well as fees for early termination in the event that you decide to terminate the agreement before the end of the term. Therefore, it’s important to carefully consider all of the pros and cons of solar PPAs prior signing one.