What is a solar power purchase agreement (PPA)?

Home » Solar Power Purchase Agreement (PPA) Explained: A Comprehensive Guide In the dynamic landscape of renewable energy, the Solar Power Purchase Agreement (PPA) has emerged as a game-changer, offering individuals and businesses a pathway to harness solar power without the burden of upfront costs.

Should I go solar with a PPA?

As with all financing solutions, going solar with a PPA has both advantages and disadvantages. Here are some of the pros: Most solar PPAs offer a $0-down way to go solar: you won't start paying until the solar panel system starts generating electricity for your home.

What is a power purchase agreement (PPA)?

A Power Purchase Agreement (PPA) refers to a contractual agreement between two parties, typically a power producer and a customer. The producer usually arranges the design, gains the necessary permissions and manages the installation of a solar PV system on the customer’s property at little to no cost.

Are solar PPAs right for your business?

Perhaps the most compelling aspect of Solar PPAs is their immediate financial benefit. By entering a PPA, your business can tap into solar energy without the considerable upfront costs associated with solar panel installation and maintenance.

What happens when a solar PV contract ends?

When the contracts come to an end the customer can choose to remove the system, extend the PPA or purchase the energy system. On-site solar PV generation can take the form of either a large-scale rooftop installation on a commercial or industrial (C&I) site, or a ground-mount installation on adjacent land.

What financing options are available for solar panels?

Power purchase agreements... Many $0-down financing options are available for going solar, including ownership (i.e., solar loan) or third-party-owned (i.e., leases) solutions. Many homeowners looking for an easy, low-cost, maintenance-free way to install a solar panel system move forward with a power purchase agreement (PPA).