Best Solar Company in San Diego Country Estates, CA

The solar power purchase contract (PPA) is an agreement for financial transactions in which a third-party solar developer owns, operates, and maintains its solar photovoltaic (PV) system and a client accepts to buy power from the system at an agreed-upon price per kilowatt hour (kWh) over a specified duration. PPAs with solar are a popular method for schools, businesses as well as other institutions to make the switch to solar at a low to no upfront expense. Although solar PPAs can offer substantial financial advantages, it’s essential to realize that you’ll lose many of the benefits which come with having your solar power system. For instance, you won’t not have the opportunity to take advantage of tax credits for solar or other incentives, nor will you be allowed for selling excess electricity back to grid. Additionally, you could be subject to annual price increases, as well as early termination fees should you opt to end the agreement prior to the expiration of the contract. Therefore, it’s essential to take a careful look at all of the advantages and disadvantages of solar PPAs prior to signing one.