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.
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.
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.