Best Solar Company in South Pasadena, CA

An agreement to purchase solar energy (PPA) is an agreement for financial transactions in which an outside solar developer owns, operates, and manages the solar photovoltaic (PV) system and a client is obligated to purchase energy from the system at a fixed price per kilowatt-hour (kWh) during a specified period of time. Solar PPAs are a popular way for businesses, schools, and other organizations to go solar with little or no upfront costs. While solar PPAs can provide significant financial benefits, it is important to understand that you’ll lose certain benefits that come with owning your solar panel. For example, you will not have the opportunity to take advantage of tax credits for solar and other benefits, and you will not be in a position for selling excess electricity back to grid. In addition, you may be susceptible to price increases every year, as well as early termination fees if you choose to cancel the agreement prior to the expiration of the term. Therefore, it’s important to carefully consider all of the advantages and disadvantages of solar PPAs prior signing one.