Best Solar Company in Palos Verdes Estates, CA

An agreement to purchase solar energy (PPA) is a financial agreement in which an outside solar developer is the one who owns, manages and maintains its solar photovoltaic (PV) system and a client is obligated to purchase power from the system at a fixed price per kilowatt-hour (kWh) for a predetermined duration. PPAs with solar 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 important to understand that you will be relinquishing certain benefits that come with owning your solar PV system. For instance, you won’t not have the opportunity to take advantage of solar tax credits as well as other incentive programs, nor will you be able transfer excess energy back to the grid. In addition, you may be susceptible to price increases every year and early termination fees should you opt to end the agreement prior to the expiration of the contract. This is why it’s essential to take a careful look at all of the advantages and disadvantages of solar PPAs prior to entering into one.