Best Solar Company in Cudahy, CA

An agreement to purchase solar energy (PPA) is a financial agreement in which a third-party solar developer manages, owns, and maintains the solar photovoltaic (PV) system and a client is obligated to purchase power from the system at the fixed rate per kilowatt-hour (kWh) for a specific period of time. PPAs with solar are a popular way for businesses, schools and other entities to go solar with little or no upfront costs. While solar PPAs may provide significant financial benefits, it is important to understand that you’ll be losing some of the advantages that come with owning your own solar panel. For instance, you’ll not have the opportunity to take advantage of solar tax credits or other incentives, nor will you be able to sell excess power back to 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 agreement before the end of the contract. This is why it’s essential to take a careful look at all the advantages and disadvantages of solar PPAs prior entering into one.