Ppa For Solar Panels

Solar ppas allow you to install solar panels without upfront costs.

Ppa for solar panels. Leasing solar panels with a power purchase agreement ppa a recent development in the solar financing industry was the creation of a power purchase agreement wherein a financier finances the installation and the homeowner pays them in return over 20 years through a new kwh payment structure. In simple terms a solar lease or solar ppa is a rental agreement between a solar installer and the homeowner. However this doesn t mean a ppa is the best way to finance a solar system. A solar ppa is a type of solar financing agreement.

With a ppa a solar company installs the solar system on your roof and covers the entire installation cost allowing the homeowner to pay little or no money down. Under these solar power purchase agreements the installer builds a solar power system on the homeowner s property but the solar installer retains ownership of the system. With a ppa a homeowner does not have to pay for the upfront costs of a solar system. What is a solar power purchase agreement.

These challenges include things such as high capital costs performance risks maintenance and more. A solar ppa is a long term agreement between you and a solar provider and or installer to lease your roof in return for a lower energy bill. That s where a power purchase agreement ppa came in and began gaining traction in the solar industry.