Buying Solar Panels Vs Ppa

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.

Buying solar panels vs ppa.

Solar leases and solar power purchase agreements ppas are two kinds of solar financing options that make it easy to install a solar system on your roof. If you buy a solar panel system you own the system either outright if purchasing with cash or by financing the investment with a loan. With so many choices it can get confusing quickly and getting it wrong can lock you into a contract that might not be the best choice for you and your family. Many solar installers advertise solar leases or power purchase agreements solar ppas as an easy way to reduce your electricity bill.

Leasing solar panels with a ppa power purchase agreement a recent development in the solar financing industry was the creation of a power purchase agreement wherein a financier finances the installation and the homeowner pays them in return over 20 years through a new kwh payment structure. A solar power purchase agreement ppa is a financial agreement where a developer arranges for the design permitting financing and installation of a solar energy system on a customer s property at little to no cost. Leasing solar panels ppa vs. You get two decades of options that will help save the planet from harmful greenhouse gases and save on your wallet too.

If you lease the system or sign a power purchase agreement ppa a third party owns the solar panel system. That can raise your return on investment significantly meaning it may be much longer until your equipment is technically profitable. Installing solar power through a ppa comes at the expense of solar rebates like the federal government s renewable energy tax credit which can add up to thousands of dollars of cost relief. Leasing solar panels.

Both solar leases and solar ppas are very similar making it hard to tell the difference between the two. Solar lease vs ppa vs purchase if you re looking to go solar and save big on the inevitable rise in electricity rates then you have a few sunrun options. Buying solar panels vs. Solar ppa vs lease vs buy the pros cons of each.

The developer sells the power generated to the host customer at a fixed rate that is typically lower than the local utility. Solar system options benefits. 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. The main difference between buying and leasing a solar system is ownership.

If you buy a solar panel system you own the system either outright if purchasing with cash or after repaying your solar loan. In this guide you ll learn everything you need to know about solar power purchase agreements ppa and buying or leasing solar panels for your home.