Best Solar Company in Valencia, CA

The solar power purchase contract (PPA) is a financial agreement in which a third-party solar developer is the one who owns, manages and maintains its solar photovoltaic (PV) system, and a customer agrees to purchase electricity from the system for an agreed-upon price per kilowatt hour (kWh) for a specified period of time. Solar PPAs are a popular option for schools, businesses and other entities to make the switch to solar at a low to no upfront expense. Although solar PPAs can offer substantial financial advantages, it’s essential to realize that you will be relinquishing many of the benefits which come with having your solar PV system. For example, you will not be able to avail of solar tax credits or other incentives, and you will not be allowed to sell excess power to the grid. Furthermore, you may be subject to annual price increases and early termination charges should you opt to end the agreement prior to the expiration of the contract. This is why it’s important to carefully consider all of the advantages and disadvantages of solar PPAs prior to entering into one.