Best Solar Company in South San Gabriel, CA

A solar power purchase agreement (PPA) is an agreement for financial transactions in which an outside solar developer owns, operates, and maintains the photovoltaic (PV) system, and a customer accepts to buy power from the system at a fixed price per kilowatt-hour (kWh) during a specific duration. PPAs with solar are a popular way for businesses, schools and other entities to make the switch to solar at a low or no upfront costs. While solar PPAs can provide substantial economic benefits, it’s essential to realize that you will be relinquishing some of the advantages 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 to sell excess power to grid. Furthermore, you may be in the midst of annual price hikes and also fees for early termination in the event that you decide to terminate the agreement before the end of the agreement. As such, it is important to carefully consider all the pros and cons of solar PPAs prior to entering into one.