Best Solar Company in Riverside, CA

A solar power purchase agreement (PPA) is a financial agreement in which a third-party solar developer manages, owns, and manages its solar photovoltaic (PV) system and the customer accepts to buy energy from the system at the fixed rate per kilowatt-hour (kWh) over a specified period of time. PPAs with solar are a popular option for schools, businesses as well as other institutions to make the switch to solar at a low to no upfront cost. Although solar PPAs can offer substantial financial benefits, it is crucial to be aware that you will be relinquishing certain benefits that come with owning your own solar panel. For instance, you won’t not be able to avail of tax credits for solar 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 charges in the event that you decide to terminate the agreement prior to the expiration of the contract. This is why it’s important to carefully consider all of the advantages and disadvantages of solar PPAs before signing one.