Best Solar Company in Pomona, CA

The solar power purchase contract (PPA) is a financial agreement in which a third-party solar developer manages, owns, and maintains the photovoltaic (PV) system, and a customer agrees to purchase power from the system at an agreed-upon price per kilowatt hour (kWh) over a specific duration. Solar PPAs are a common method for schools, businesses as well as other institutions to go solar with little to no upfront expense. While solar PPAs may provide significant economic benefits, it’s important to understand that you’ll lose some of the advantages that come with owning your own solar PV system. For example, you will not have the opportunity to take advantage of tax credits for solar as well as other incentive programs, nor will you be allowed transfer excess energy back to the grid. In addition, you may be subject to annual price increases, as well as early termination fees if you choose to cancel the agreement prior to the expiration of the contract. Therefore, it’s important to carefully consider all of the advantages and disadvantages of solar PPAs before signing one.