Best Solar Company in Santa Clarita, CA

A solar power purchase agreement (PPA) is a financial agreement in which the third-party solar developer is the one who owns, operates, and maintains its solar photovoltaic (PV) system and the customer agrees to purchase energy from the system at an agreed-upon price per kilowatt hour (kWh) over a predetermined duration. PPAs with solar are a popular way for businesses, schools as well as other institutions to make the switch to solar at a low or no upfront costs. While solar PPAs may provide significant economic benefits, it’s important to understand that you’ll lose certain benefits associated with owning your own solar PV system. For instance, you won’t not be able to avail of tax credits for solar or other incentives, nor will you be allowed for selling excess electricity back to the grid. Furthermore, you may be susceptible to price increases every year and also early termination charges if you choose to cancel the agreement before the end of the term. Therefore, it’s essential to take a careful look at all the advantages and disadvantages of solar PPAs prior entering into one.