Solar PPAs
(Power Purchase Agreements)
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Solar PPAs – What Are They and How Do They Work?
- Solar provider installs solar panels on your roof, and you purchase the electricity they produce at a discounted, pre-determined rate
- The only thing you pay for is the power you use
- Solar provider maintains the panels and owns them for the duration of the agreement
- Simple, cheap option to go solar
- Most agreements are $o down
In a Solar PPAs (Power Purchase Agreements) you enter into an agreement to have panels installed on your roof and purchase the power they generate over a set period of time at a pre-determined price. The solar provider owns and maintains the panels on your roof and provides you with the power from the panels – hence the name “power purchase agreement”.
Unlike with solar power loans, you pay only for the power your panels produce in a PPA. If the panels produce very little power, you only pay for very little power. Of course, the opposite is also true. Like solar leases, solar PPAs are set below the rate you currently pay for electricity and have an escalator – a percent they increase each year that covers inflation and maintenance costs.
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Panels are installed on your home
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Only pay for the power you use
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Purchase power at discounted rate
A Solar PPA Example – Potential Savings Over 20 Years
Is a Solar PPA Appropriate for My Home?
- Solar PPAs are appropriate for homeowners who want to go solar as simply as possible.
- Much like a solar lease, everything is taken care of the by the solar provider, and you are able to begin saving immediately on your power while reducing your impact on the environment.
Solar PPA Advantages:
- Lock in your energy costs for the future
- Solar PPAs (Power Purchase Agreements) help homeowners reduce their electricity bill while helping the environment
- Almost all PPAs are $0 down
- Allow for a hands-off approach to going solar – the company providing the PPA does everything for you.
- Most solar PPAs have a “bracket” you are guaranteed power within – so your power bill won’t skyrocket on sunny days.
- The firm you set up your PPA with will manage the panels and inverters throughout the life of the PPA.
Where can I find solar PPA providers?
Solar PPAs (Power Purchase Agreements) and solar leases are usually provided by the same providers, but in different areas of the country, only one type or the other is available due to local utility regulations requiring the leasing of power equipment or the purchase of power. Solar PPAs are offered by many of the larger solar firms, and through many of the smaller installers through the larger firm’s financing arms.
Each of the firms we work with offers their clients every solar panel financing option that we discuss on the site. While PPAs aren’t available everywhere due to regional regulations, you can see if solar PPAs are offered by providers in your area by putting your zip code in the box at the top of the page.
Whether you lease or buy solar panels, you will save money on your energy bill.
Ready to See How Much You Can Save with Solar?
Interested in getting exact prices for the cost solar for your home? Get competitive solar quotes from qualified, trusted installers in your area. To see an estimate for how much you could expect to save and how much a solar system would cost, try our solar calculator.
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