Home Solar Power Contract

How does a solar power purchase agreement work?

When you sign a power purchase agreement, a company installs a solar energy system on your house. You sign a long-term contract to buy the power that the system produces. You pay for the power at a price set by the PPA company. Some PPA companies tell you they charge reduced rates because they get tax credits and incentives.

What is a solar power contract?

A solar contract is a signed agreement between a person and a solar power installation company that clearly outlines every part of the solar panel installation process, including the steps before, during, and after the actual installation, and who is responsible for each.

What is a solar power purchase agreement (SPPA)?

A Solar Power Purchase Agreement (SPPA) is a financial arrangement in which a third-party developer owns, operates, and maintains the photovoltaic (PV) system, and a host customer agrees to site the system on its property and purchases the system's electric output from the solar services provider for a predetermined period.

How does a solar energy contract work?

The details of the solar energy contract will differ depending upon how you intend to pay for your solar panel installation. Homeowners who pay for their panels upfront with cash, or through a solar loan, will see something different than someone who signs a solar lease or solar power purchase agreement (PPA).

Is a solar power purchase agreement a good idea?

Instead, you can enjoy lower energy bills while powering your home with green energy. PPAs may also be a good solar option if you do not have the ability to claim the lucrative incentives or tax credits. How does a solar power purchase agreement work?

What should a solar power contract include?

The point of your solar power system is to generate electricity so you can reduce the amount you draw from the utility grid. This section of the contract should outline your average estimated energy production, or how much power your panels can produce. It may also include your annual home electricity consumption before installing solar.