Best Solar Company in Temecula, CA

A solar power purchase agreement (PPA) is an agreement for financial transactions in which an outside solar developer owns, operates, and manages its solar photovoltaic (PV) system, and a customer accepts to buy power from the system at the fixed rate per kilowatt-hour (kWh) during a specific period of time. PPAs with solar are a popular option for schools, businesses as well as other institutions to switch to solar power with minimal to no upfront expense. Although solar PPAs can offer substantial economic benefits, it’s crucial to be aware that you will be relinquishing many of the benefits associated with owning your solar power system. For instance, you won’t not be able to take advantage of tax credits for solar and other benefits, nor will you be able to sell excess power back to grid. Additionally, you could be susceptible to price increases every year, as well as fees for early termination in the event that you decide to terminate the agreement before the end of the contract. This is why it’s important to carefully consider all the advantages and disadvantages of solar PPAs prior entering into one.