Best Solar Company in The Colony

A solar power purchase agreement (PPA) is a financial agreement in which an outside solar developer is the one who owns, manages and maintains the solar photovoltaic (PV) system, and a customer is obligated to purchase electricity from the system for an agreed-upon price per kilowatt hour (kWh) for a specified duration. Solar PPAs are a popular way for businesses, schools and other entities to make the switch to solar at a low or no upfront costs. While solar PPAs can provide substantial financial advantages, it’s essential to realize that you’ll be losing many of the benefits which come with having your own solar panel. For instance, you’ll not be able to take advantage of solar tax credits as well as other incentive programs, and you will not be allowed to sell excess power back to the grid. In addition, you may be susceptible to price increases every year and early termination fees should you opt to end the contract before the end of the agreement. Therefore, it’s crucial to consider all of the advantages and disadvantages of solar PPAs prior to entering into one.