Best Solar Company in Poway, CA

A solar power purchase agreement (PPA) is an agreement for financial transactions in which the third-party solar developer is the one who manages, owns, and maintains the photovoltaic (PV) system and a client accepts to buy electricity from the system for a fixed price per kilowatt-hour (kWh) over a specific period of time. PPAs with solar are a popular option for schools, businesses as well as other institutions to switch to solar power with minimal or no upfront costs. While solar PPAs can provide 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 have the opportunity to take advantage of tax credits for solar as well as other incentive programs, and you will not be allowed transfer excess energy to grid. In addition, you may be susceptible to price increases every year, as well as fees for early termination in the event that you decide to terminate the agreement before the end of the agreement. This is why it’s crucial to consider all of the advantages and disadvantages of solar PPAs before signing one.