Best Solar Company in Benbrook

A solar power purchase agreement (PPA) is an agreement for financial transactions in which the third-party solar developer is the one who owns, operates, and manages its solar photovoltaic (PV) system and a client accepts to buy energy from the system at the fixed rate per kilowatt-hour (kWh) for a specific duration. PPAs with solar are a popular method for schools, businesses and other entities to make the switch to solar at a low or no upfront costs. Although solar PPAs can offer significant financial advantages, it’s important to understand that you’ll be losing some of the advantages which come with having your solar PV system. For example, you will not be able to take advantage of tax credits for solar and other benefits, and you will not be able to sell excess power to the grid. Additionally, you could be susceptible to price increases every year and early termination charges if you choose to cancel the agreement prior to the expiration of the agreement. This is why it’s important to carefully consider all of the pros and cons of solar PPAs prior entering into one.