Best Solar Company in Ladera Heights, CA

A solar power purchase agreement (PPA) is an agreement for financial transactions in which the third-party solar developer is the one who owns, operates, and maintains its solar photovoltaic (PV) system, and a customer agrees to purchase energy from the system at an agreed-upon price per kilowatt hour (kWh) for 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 can provide significant economic benefits, it’s important to understand that you’ll be losing some of the advantages which come with having your own solar power system. For instance, you’ll not be able to take advantage of solar tax credits or other incentives, nor will you be in a position transfer excess energy back to grid. In addition, you may be subject to annual price increases, as well as early termination fees in the event that you decide to terminate the agreement before the end of the term. This is why it’s important to carefully consider all the pros and cons of solar PPAs prior to signing one.