Best Solar Company in Hillcrest, CA

A solar power purchase agreement (PPA) is an agreement for financial transactions in which an outside solar developer owns, operates, and manages the solar photovoltaic (PV) system and a client agrees to purchase power from the system at an agreed-upon price per kilowatt hour (kWh) during a specific period of time. PPAs with solar are a popular option for schools, businesses and other entities to make the switch to solar at a low or no upfront costs. Although solar PPAs can offer significant financial benefits, it is crucial to be aware that you’ll be losing some of the advantages that come with owning your solar power system. For example, you will not be able to take advantage of solar tax credits and other benefits, nor will you be able to sell excess power to the grid. Additionally, you could be subject to annual price increases and also fees for early termination if you choose to cancel the agreement prior to the expiration of the contract. This is why it’s essential to take a careful look at all of the pros and cons of solar PPAs prior signing one.