Best Solar Company in Los Alamitos, CA

An agreement to purchase solar energy (PPA) is an agreement for financial transactions in which a third-party solar developer owns, operates, and maintains the solar photovoltaic (PV) system and the customer agrees to purchase electricity from the system for an agreed-upon price per kilowatt hour (kWh) over a specific period of time. PPAs with solar are a popular way for businesses, schools and other entities to make the switch to solar at a low to no upfront expense. Although solar PPAs can offer substantial economic benefits, it’s important to understand that you’ll be losing some of the advantages that come with owning your solar power system. For instance, you’ll not be able to take advantage of solar tax credits as well as other incentive programs, nor will you be allowed transfer excess energy back to grid. Additionally, you could be susceptible to price increases every year, as well as fees for early termination if you choose to cancel the agreement before the end of the contract. Therefore, it’s important to carefully consider all the pros and cons of solar PPAs prior to entering into one.