Best Solar Company in San Fernando, CA

The solar power purchase contract (PPA) is an agreement for financial transactions in which an outside solar developer manages, owns, and maintains its solar photovoltaic (PV) system, and a customer accepts to buy energy from the system at a fixed price per kilowatt-hour (kWh) over a specific period of time. Solar PPAs are a common method for schools, businesses, and other organizations to switch to solar power with minimal to no upfront expense. While solar PPAs can provide substantial economic benefits, it’s important to understand that you’ll lose some of the advantages that come with owning your solar power system. For instance, you’ll not be able to avail of solar tax credits as well as other incentive programs, and you will not be allowed to sell excess power to grid. Furthermore, you may be subject to annual price increases, as well as early termination fees if you choose to cancel the contract before the end of the contract. As such, it is important to carefully consider all the advantages and disadvantages of solar PPAs prior to signing one.