Best Solar Company in Santa Maria, CA

The solar power purchase contract (PPA) is an agreement for financial transactions in which a third-party solar developer is the one who owns, manages and maintains the photovoltaic (PV) system and a client is obligated to purchase electricity from the system for an agreed-upon price per kilowatt hour (kWh) over a specific duration. Solar PPAs are a common 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 significant economic benefits, it’s important to understand that you will be relinquishing many of the benefits which come with having your own solar power system. For instance, you’ll not be able to avail of tax credits for solar as well as other incentive programs, nor will you be able transfer excess energy to grid. Additionally, you could be susceptible to price increases every year, as well as fees for early termination in the event that you decide to terminate the contract before the end of the agreement. This is why it’s crucial to consider all of the advantages and disadvantages of solar PPAs prior entering into one.