A Solar PPA (Power Purchase Agreement) and How It Differs From a Solar Lease
A Solar PPA (Power Purchase Agreement) and How It Differs From a Solar Lease
What is a Solar PPA (Power Purchase Agreement)?
A solar power purchase agreement (PPA) and a solar lease are two different financing options for homeowners who want to install solar power systems on their properties. Both options allow homeowners to install solar panels on their homes without having to pay the full cost upfront. However, there are some key differences between the two options.
A solar PPA is a contract between a homeowner and a solar developer. Under a PPA, the homeowner agrees to purchase the electricity generated by the solar panels at a fixed price per kilowatt-hour (kWh) over a certain period of time, typically 20-25 years. The solar developer is responsible for designing, installing, and maintaining the solar power system, and the homeowner is only responsible for paying for the electricity generated. By utilizing your available rooftop or ground space, you will receive a much lower energy bill every month, and you have NO responsibility for the installation, maintenance, or design of the solar energy system itself!
An additional benefit of going with a PPA like the program offered by SunPower is that you have the option (if you choose) to buy the system outright after 5 years at a reduced cost.
What is a Solar Lease?
On the other hand, a solar lease is a contract between a homeowner and a solar company where the homeowner rents the solar panel system on their property for a set period, usually 20-25 years. These are the typical programs that solar companies like SunRun try to sell. The solar company is responsible for designing, installing, and maintaining the system, and the homeowner is responsible for paying a monthly lease fee. After the lease period, the homeowner has the option to purchase the system or have it removed.
How Does a Solar PPA Differ From a Lease?
Both options allow homeowners to go solar without having to pay the full cost upfront, but there are some key differences between the two. With a PPA, the homeowner is purchasing the electricity generated by the solar panels, while with a lease, the homeowner is renting the solar panel system. Additionally, and more importantly with a PPA, the homeowner is NOT responsible for maintenance or repairs, but with a lease, the homeowner MAY be responsible for some of these costs.
In summary, both solar PPA and Lease programs provide an option to install solar panel system without having to pay upfront, but a PPA is a contract to purchase electricity generated by the solar panel system, while a lease is a contract to rent the solar panel system. The party responsible for maintenance and repairs also differs with both options.
The SunPower PPA (Power Purchase Agreement)
When you sign a contract for a SunPower PPA you agree to allow SunPower to install a solar panel system on your roof for no cost. In return, you the homeowner pays SunPower for the energy produced by the solar panel system installed on your house. The energy is sold at a fixed rate that is signifcantly lower than your local utility’s electricity rate. As you must be aware by now, your local utility provider has raised your electricity rates to outrageous all-time highs!
When you install a SunPower solar system you get the highest efficiency home solar panels on the market directly from the manufacturer and no surprises. Plus, every SunPower PPA comes with a power production guarantee and the industry’s best combined power and product warranty. This is a winning solution for many of our clients and we’re proud to offer the SunPower PPA to homeowners across Massachusetts. The SunPower PPA is a popular financing option for solar energy because it allows the homeowner to use solar energy without paying the up-front cost of going solar.
Viridis Energy Offers SunPower PPA's (Power Purchase Agreements)
With the astronomical rise in electricity costs, Viridis Energy can help you cut way down on your electric bill so you may save your hard-earned money! We offer the best PPA around with the company who's been in the Solar industry the longest - SunPower!
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