Best Solar Company in Lennox, CA

The solar power purchase contract (PPA) is a financial agreement in which a third-party solar developer manages, owns, and maintains its solar photovoltaic (PV) system and a client is obligated to purchase electricity from the system for the fixed rate per kilowatt-hour (kWh) for a predetermined period of time. Solar PPAs are a popular way for businesses, schools and other entities to make the switch to solar at a low to no upfront cost. While solar PPAs can provide significant financial benefits, it is essential to realize that you’ll be losing many of the benefits that come with owning your own solar power system. For instance, you’ll not have the opportunity to take advantage of solar tax credits as well as other incentive programs, nor will you be in a position transfer excess energy to the grid. Furthermore, you may be susceptible to price increases every year and also early termination fees in the event that you decide to terminate the agreement prior to the expiration of the term. As such, it is important to carefully consider all the pros and cons of solar PPAs prior entering into one.