Best Solar Company in Parker

The solar power purchase contract (PPA) is an agreement for financial transactions in which a third-party solar developer owns, operates, and manages its solar photovoltaic (PV) system, and a customer is obligated to purchase power from the system at the fixed rate per kilowatt-hour (kWh) during a specified duration. PPAs with solar are a popular way for businesses, schools as well as other institutions to make the switch to solar at a low or no upfront costs. Although solar PPAs can offer substantial financial benefits, it is important to understand that you’ll lose many of the benefits associated with owning your solar power system. For example, you will not be able to take advantage of solar tax credits and other benefits, nor will you be in a position to sell excess power back to grid. Additionally, you could be in the midst of annual price hikes and also early termination charges if you choose to cancel the agreement before the end of the contract. As such, it is crucial to consider all of the pros and cons of solar PPAs before entering into one.