Best Solar Company in South San Jose Hills, CA

An agreement to purchase solar energy (PPA) is a financial agreement in which the third-party solar developer is the one who owns, operates, and manages its solar photovoltaic (PV) system and a client agrees to purchase electricity from the system for a fixed price per kilowatt-hour (kWh) over a specific period of time. Solar PPAs are a common way for businesses, schools and other entities to switch to solar power with minimal to no upfront cost. Although solar PPAs can offer substantial financial advantages, it’s important to understand that you’ll lose some of the advantages associated with owning your own solar power system. For instance, you won’t not have the opportunity to take advantage of tax credits for solar and other benefits, and you will not be allowed for selling excess electricity to the grid. Furthermore, you may be susceptible to price increases every year, as well as fees for early termination in the event that you decide to terminate the agreement prior to the expiration of the contract. Therefore, it’s important to carefully consider all the pros and cons of solar PPAs prior entering into one.