Best Solar Company in Thousand Palms, CA

The solar power purchase contract (PPA) is an agreement for financial transactions in which a third-party solar developer owns, operates, and maintains its solar photovoltaic (PV) system, and a customer is obligated to purchase energy from the system at an agreed-upon price per kilowatt hour (kWh) during a specific period of time. Solar PPAs are a common way for businesses, schools as well as other institutions to make the switch to solar at a low or no upfront costs. While solar PPAs can provide substantial financial advantages, it’s important to understand that you’ll be losing many of the benefits which come with having your own solar PV system. For example, you will not be able to take advantage of tax credits for solar as well as other incentive programs, and you will not be able transfer excess energy back to grid. In addition, you may be susceptible to price increases every year, as well as early termination charges should you opt to end the agreement prior to the expiration of the agreement. As such, it is essential to take a careful look at all the advantages and disadvantages of solar PPAs prior to signing one.