Solar PPAs, Loans, and Purchases
Power Purchase Agreements (PPAs) are a great option for almost anyone to go solar! But what’s the difference between the two options?
With a PPA, you don’t have to pay the high upfront cost of panels, equipment, and installation.
So how do PPAs work?
No Upfront Cost Solar Option
A PPA is a situation where we purchase the system for you and we own it. You don’t pay for the system, permits, installation, or any other system startup costs. We have multiple programs that require no initial or down payment.
Since we own the system, we maintain it. It’s connected to the Internet and notifies us if anything goes wrong. We always respond quickly to fix any issues. We guarantee our electric service.
You Save Money From Day One
Once your system is connected, the cost of your electricity drops to your new, low, solar rate — the rate of your individualized PPA. You don’t need to wait years for a return on investment (ROI) because there is no investment— but the clean energy and cost savings are immediate!
You’re Protected Against Increasing Energy Costs
Energy costs have been growing at high rates over the past three decades and are projected to keep increasing. A solar PPA offers you secure protection from these rate increases in the future.
Is a PPA the same as a lease?
Lease: You pay fixed monthly “rent” to provider in return for use of the system.
PPA: You pay a fixed price per kWh for power generated.
What types of payment options are available?
You can choose how much you want to pay upfront with a PPA. So, you can pay more upfront and get a lower monthly rate or payment if you would like to do that.
1. $0. to very little down: You pay little to nothing upfront. Flat-rate for 20 years.
2. Prepaid Option: You pay all payments upfront, with no additional monthly payments for the life of the agreement.
Loans — Own Your System, Pay Over Time
A loan is a great way to take advantage of the incentives and long-term savings of a solar system without providing all of the cash up front. Every month, you’ll make payments to re-pay your loan principal and interest.
When you pay up front you get the largest lifetime savings. You pay the full cost for the solar panels, equipment, installation, and any fees up front and own the solar system without any additional payments over time.
As the outright owner, you may claim any local, state, or federal incentives.