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What Is a Solar PPA?

December 12, 2019

A Solar PPA, or more formally known as a Power Purchase Agreement, is a financial contract between a developer and homeowner where both parties mutually benefit from the installation of solar panels on the roof of the homeowner’s house. In this agreement, the homeowner’s solar panel installation costs are drastically reduced or in some cases eliminated when the developer arranges pay for the cost of your new solar panel energy system.

Why Agree to a Solar PPA?

As a homeowner the costs of maintaining a home can be overwhelming at times. If you and your family want to invest in cleaner energy but are struggling with the upfront costs, a PPA can help you save money on your electric bills and cover the cost of installation. 

The developer benefits as well. Because they covered the cost of the system, the developer receives the tax credits and other incentives that go along with the new installation. The power generated by the solar panels on your roof is then sold at a fixed rate lower than that of the electric company. This results in a lower electric bill for you. It’s a true win-win.

Solar PPA Benefits

Some of the ultimate benefits of a Power Purchase Agreement include:

  • Limited term agreements

    PPA agreements do not last forever. Typical agreements can last as little as ten years. At that time, you may find it beneficial to purchase the system from the developer. If not, an extension of the PPA is usually available to customers as well. It provides flexibility for the average homeowner. You will lower your electric bills without the upfront costs. 

  • Less upkeep responsibility

    The developer is responsible for the maintenance, performance, and repairs to the solar panels under the typical PPA. 

  • Fixed electricity cost

    The fixed price of your reduced electric bill will save you lots of money in the long term as electric rates rise due to inflation and other contributing factors. Knowing how much you will pay throughout the duration of the agreement gives you peace of mind.

  • Increased property value

    Homes with installed solar panel systems typically sell for more money than a comparable home without. Increase the value of your property without the investment. 

Quality Solar Panel Systems

A+ rated from the Better Business Bureau, PES Solar has been in the solar industry for over 20 years. If you’re interested in investing in solar energy, then PES Solar can match you with a solar panel system that produces the energy and savings you need. Whether you choose a Solar PPA or our zero-down financing, we can discuss the best solar power options to fit your finances. Contact PES Solar today at (800) 650-6519 to schedule your free solar consultation.