Best Solar Company in Newport Beach, CA

An agreement to purchase solar energy (PPA) is a financial agreement in which an outside solar developer owns, operates, and manages the photovoltaic (PV) system and a client is obligated to purchase energy from the system at an agreed-upon price per kilowatt hour (kWh) over a specified duration. Solar PPAs are a popular way for businesses, schools, and other organizations to switch to solar power with minimal or no upfront costs. While solar PPAs may provide substantial economic benefits, it’s important to understand that you’ll be losing certain benefits associated with owning your solar PV system. For example, you will not be able to take advantage of tax credits for solar as well as other incentive programs, nor will you be allowed transfer excess energy to grid. In addition, you may be subject to annual price increases and also early termination fees in the event that you decide to terminate the agreement prior to the expiration of the agreement. This is why it’s important to carefully consider all of the advantages and disadvantages of solar PPAs prior signing one.