Best Solar Company in Sunnyvale

A solar power purchase agreement (PPA) is a financial agreement in which an outside solar developer owns, operates, and manages the photovoltaic (PV) system and a client is obligated to purchase power from the system at an agreed-upon price per kilowatt hour (kWh) for a predetermined duration. Solar PPAs are a common way for businesses, schools and other entities to make the switch to solar at a low to no upfront expense. While solar PPAs can provide significant financial advantages, it’s essential to realize that you’ll lose many of the benefits associated with owning your solar PV system. For example, you will not be able to take advantage of solar tax credits as well as other incentive programs, and you will not be able to sell excess power to grid. Furthermore, you may be susceptible to price increases every year, as well as early termination fees in the event that you decide to terminate the contract before the end of the contract. As such, it is essential to take a careful look at all the advantages and disadvantages of solar PPAs prior to entering into one.