That s where a power purchase agreement ppa came in and began gaining traction in the solar industry.
Solar power purchase agreement vs lease.
Solar ppa updated june 21 2020.
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.
Ppa means you only pay for the electricity you use.
If you buy a solar panel system you own the system either outright if purchasing with cash or after repaying your solar loan.
Are you considering a lease or ppa offer from sunrun.
The difference between a solar lease and a solar ppa power purchase agreement is explained in this article.
Solar ppa solar lease vs.
The main practical distinction between buying and leasing a solar pv system is in ownership.
You pay a fixed price per kwh for power generated by the system in most cases your monthly bill will rise or fall with the amount of power your system produces.
5 minutes sunrun is one of the largest solar installation companies in the country and has partnerships with organizations like comcast major league baseball and costco the company primarily offers solar leases and power purchase agreements ppas to homeowners although there are also cash purchase and solar loan options.
The sunpower solar lease comes with sunpower solar panels the most powerful home solar panels available on the market today.
More power on the roof means more electric bill reduction and more savings.
Many solar installers advertise solar leases or power purchase agreements solar ppas as an easy way to reduce your electricity bill.
You pay a fixed monthly amount to use the energy generated by the solar system on your roof.
Solar leases mean a fixed monthly lease payment.
Depending on where you live you will have to either sign up for a solar lease or solar power purchase agreement ppa.
Non sunpower solar ppas and non sunpower leases often use economy panels 260 watts that when combined with the new building codes make it difficult to install high power systems on most roofs.
Solar ppa and leases are generally better for people with credit challenges or cannot take advantage of the solar investment tax credit itc.
If you lease the system or sign a power purchase agreement ppa a third party owns the solar panel system.
A solar system can either be purchased with cash outright or through a loan.
If renting is more appealing you can lease the system or enter a ppa power purchase agreement wherein you get a new rate of electricity kwh instead of the one the utility gives you more on this later.
Buying solar panels requires an investment and more decision making than leasing but over the long term the benefits of owning your system are hard to beat.
If you are interested in a simple low maintenance option for installing a solar energy system on your home leasing solar panels is a good option for you.
