Best Solar Company in Richland, CA

A solar power purchase agreement (PPA) is a financial agreement in which an outside solar developer is the one who owns, manages and maintains the photovoltaic (PV) system and a client is obligated to purchase energy from the system at an agreed-upon 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 lose many of the benefits that come with owning your solar PV system. For example, you will not have the opportunity to take advantage of tax credits for solar as well as other incentive programs, nor will you be in a position to sell excess power back to the grid. Additionally, you could be susceptible to price increases every year, as well as early termination fees in the event that you decide to terminate the contract before the end of the contract. As such, it is crucial to consider all the pros and cons of solar PPAs prior to entering into one.