Best Solar Company in Norwalk, CA

A solar power purchase agreement (PPA) is a financial agreement in which a third-party solar developer owns, operates, and manages the solar photovoltaic (PV) system and a client is obligated to purchase electricity from the system for a fixed price per kilowatt-hour (kWh) over a predetermined period of time. Solar PPAs are a popular option for schools, businesses and other entities to make the switch to solar at a low or no upfront costs. 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 be able to take advantage of tax credits for solar or other incentives, nor will you be able transfer excess energy to grid. Furthermore, you may be susceptible to price increases every year and early termination fees if you choose to cancel the agreement prior to the expiration of the agreement. This is why it’s crucial to consider all of the advantages and disadvantages of solar PPAs before signing one.