Best Solar Company in Topanga, 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 manages the photovoltaic (PV) system and the customer is obligated to purchase electricity from the system for an agreed-upon price per kilowatt hour (kWh) for a specified period of time. PPAs with solar are a popular option for schools, businesses as well as other institutions to go solar with little to no upfront expense. Although solar PPAs can offer substantial economic benefits, it’s important to understand that you’ll be losing some of the advantages that come with owning your solar PV system. For instance, you won’t not have the opportunity to take advantage of solar tax credits or other incentives, nor will you be in a position transfer excess energy back to grid. Additionally, you could be susceptible to price increases every year and fees for early termination in the event that you decide to terminate the agreement before the end of the term. This is why it’s crucial to consider all of the advantages and disadvantages of solar PPAs before entering into one.