Best Solar Company in La Palma, CA

The solar power purchase contract (PPA) is an agreement for financial transactions in which an outside solar developer owns, operates, and maintains its solar photovoltaic (PV) system, and a customer agrees to purchase power from the system at an agreed-upon price per kilowatt hour (kWh) for a specified period of time. PPAs with solar are a popular method for schools, businesses, and other organizations to switch to solar power with minimal or no upfront costs. While solar PPAs can provide substantial financial advantages, it’s important to understand that you’ll be losing many of the benefits which come with having your own solar panel. For instance, you’ll not have the opportunity to take advantage of tax credits for solar and other benefits, and you will not be in a position for selling excess electricity back to the grid. Additionally, you could be in the midst of annual price hikes, as well as early termination charges if you choose to cancel the contract before the end of the contract. Therefore, it’s important to carefully consider all of the advantages and disadvantages of solar PPAs before signing one.