Best Solar Company in Coachella, 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 the customer agrees to purchase energy from the system at the fixed rate per kilowatt-hour (kWh) during a predetermined period of time. Solar PPAs are a common method for schools, businesses, and other organizations to make the switch to solar at a low or no upfront costs. While solar PPAs may provide substantial economic benefits, it’s important to understand that you’ll lose certain benefits associated with owning your own solar power system. For instance, you won’t not have the opportunity to take advantage of solar tax credits or other incentives, and you will not be in a position for selling excess electricity back to grid. Additionally, you could be susceptible to price increases every year and early termination fees if you choose to cancel the contract before the end of the agreement. Therefore, it’s essential to take a careful look at all the advantages and disadvantages of solar PPAs before signing one.