Best Solar Company in Stockton, 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 maintains its solar photovoltaic (PV) system and a client is obligated to purchase energy from the system at an agreed-upon price per kilowatt hour (kWh) over a specific period of time. Solar PPAs are a common option for schools, businesses and other entities to make the switch to solar at a low to no upfront expense. While solar PPAs may provide significant financial advantages, it’s important to understand that you’ll lose many of the benefits which come with having your solar PV system. For example, you will not have the opportunity to take advantage of solar tax credits as well as other incentive programs, nor will you be able to sell excess power back to grid. Furthermore, you may be susceptible to price increases every year and early termination charges in the event that you decide to terminate the agreement before the end of the agreement. This is why it’s essential to take a careful look at all of the advantages and disadvantages of solar PPAs prior entering into one.