Best Solar Company in Rosemead, CA

The solar power purchase contract (PPA) is an agreement for financial transactions in which an outside solar developer is the one who owns, manages and maintains the photovoltaic (PV) system, and a customer agrees to purchase electricity from the system for 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 organizations to switch to solar power with minimal or no upfront costs. Although solar PPAs can offer significant economic benefits, it’s important to understand that you’ll lose some of the advantages associated with owning your own solar panel. For instance, you’ll not be able to avail of tax credits for solar or other incentives, and you will not be able transfer excess energy to the grid. Furthermore, you may be susceptible to price increases every year and early termination charges if you choose to cancel the agreement prior to the expiration of the contract. This is why it’s important to carefully consider all of the pros and cons of solar PPAs before entering into one.