Best Solar Company in Johnstown, CA

A solar power purchase agreement (PPA) is an agreement that is financial in nature. a third-party solar developer owns, operates, and maintains the solar photovoltaic (PV) system, and a customer is obligated to purchase power from the system at a fixed price per kilowatt-hour (kWh) over a predetermined period of time. Solar PPAs are a common way for businesses, schools and other entities to go solar with little to no upfront expense. Although solar PPAs can offer substantial financial benefits, it is important to understand that you will be relinquishing some of the advantages that come with owning your own solar PV system. For instance, you’ll not have the opportunity to take advantage of tax credits for solar as well as other incentive programs, and you will not be in a position for selling excess electricity back to the grid. Additionally, you could be susceptible to price increases every year and early termination fees in the event that you decide to terminate the agreement prior to the expiration of the term. Therefore, it’s essential to take a careful look at all of the advantages and disadvantages of solar PPAs prior to signing one.