Best Solar Company in Rendon

A solar power purchase agreement (PPA) is an agreement for financial transactions in which an outside solar developer manages, owns, and manages the solar photovoltaic (PV) system and the customer agrees to purchase power from the system at the fixed rate per kilowatt-hour (kWh) for a specified duration. Solar PPAs are a common option for schools, businesses as well as other institutions to make the switch to solar at a low to no upfront expense. While solar PPAs can provide substantial economic benefits, it’s essential to realize that you will be relinquishing some of the advantages which come with having your own solar power system. For example, you will not be able to take advantage of tax credits for solar as well as other incentive programs, nor will you be in a position transfer excess energy to grid. Additionally, you could be susceptible to price increases every year, as well as early termination fees should you opt to end the contract before the end of the contract. Therefore, it’s crucial to consider all of the advantages and disadvantages of solar PPAs prior to entering into one.