Best Solar Company in South Pasadena, CA

A solar power purchase agreement (PPA) is a financial agreement in which an outside solar developer is the one who owns, manages and maintains its solar photovoltaic (PV) system and the customer accepts to buy energy from the system at a fixed price per kilowatt-hour (kWh) for a specified duration. Solar PPAs are a common method for schools, businesses, and other organizations to switch to solar power with minimal to no upfront cost. While solar PPAs may provide substantial economic benefits, it’s important to understand that you’ll lose certain benefits that come with owning your own solar PV system. For instance, you won’t not be able to take advantage of tax credits for solar or other incentives, nor will you be allowed to sell excess power back to the grid. Additionally, you could be subject to annual price increases and also early termination charges if you choose to cancel the agreement prior to the expiration of the term. Therefore, it’s crucial to consider all the pros and cons of solar PPAs before entering into one.