With the growing popularity of solar electrical generating systems, an innovative new arrangement for the purchase, installation, and operation of these systems has been created. This new arrangement is called a Solar Power Purchase Agreement, or PPA.
A PPA is a financial agreement between a property owner, a developer and the local electrical utility company. Under this arrangement, the developer will purchase and install a solar power system on the property owners land. In most cases, there are no upfront costs to the property owner for the system.
Once the system is up and running and producing power, that electricity is purchased by the property owner for his own use. Generally, the rate paid by the property owner will be lower than the rate that would be charged by the local electric company. Thus, a benefit if provided to the property owner. Moreover, the property owner avoids the cost of purchasing or installing the system. A third benefit to the property owner is that a PPA often increases the value of the property.
This type of arrangement is also advantageous to the developer. Obviously, the developer will receive income from the property owner for the electricity used, but if excess power is generated, that can be sold back to the local electric company, providing additional income to the developer. To encourage more utilization of solar power, many government entities are offering tax credits and other incentives and these credits will accrue to the developer, providing another advantage.
The typical PPA will have a contractual term of upwards to 25 years. At the end of the initial contract period, the property owner may have the option to renew the contract, purchase the system from the developer, or have the developer remove the system.
If you have any questions about the purchase or installation of a solar power system, you can reach out to the professionals at Better Tomorrow Solar. We genuinely believe that our customers’ lives are better with solar in them, that’s why we are working to make solar accessible to everyone. We provide affordable solar panel installation for residential and commercial customers, as well as solar battery storage.
We believe in the overwhelming benefits of using a solar system installation for your home or business, as solar power is a renewable energy resource, can reduce your energy bills, improve your home’s energy efficiency, and reduce your carbon footprint. Because we believe in our vision and mission so intently, it is our goal to make solar panel installation a reality for as many communities as possible throughout Atlanta, GA, and Charlotte, NC. Because we want to make residential and commercial solar installation possible for our communities, we offer expert service and game-changing financing options for solar installations.