The benefits of owning your own solar panels are hard to match - but solar power purchase agreements come in at a close second, so long as you’re working with a reputable company.
If you’re looking for a way to explore solar power without having to purchase your own panels, a PPA could prove to be a great fit. While you won’t actually own the equipment, it’ll be installed on your property for a pre-agreed upon the length of time.
This arrangement will enable you to generate clean energy and purchase it from the installation company at a rate that is typically much lower than what you would pay your utility company for “traditionally” generated energy.
In this post, we’ll fill you in on the ins and outs so that you can decide for yourself.
They Make Solar Energy Pretty Much Effortless
Solar energy is just about the most low maintenance way to go green as it is, but with a PPA it gets even easier.
Not owning your own panels has some downsides, like lower savings potential (still great), but it also means that the installation company is in charge of whatever maintenance the solar panels do need.
While things like weather damage and equipment malfunction are rare - you can rest assured that in the event that something needs to be fixed or replaced you won’t have to foot the bill.
Each installation company will likely have their own terms for panel maintenance, so be sure to double-check as to what they are before signing any paperwork.
At Lumina, we strive to ensure that those working with us have a thorough understanding of what to expect - but not all companies will have your best interest at heart.
How Long Do Solar PPAs Last?
As with maintenance, the terms for the length of the PPA may vary from company to company. On average, residential property PPAs tend to last for between 20-25 years, and in most cases can be transferred to the new owners should you decide to sell your home and move.
Solar PPAs vs Solar Leases
These two terms are easily confused due to how similar they are in function, but there are some key differences to be aware of.
With a solar lease, you pay a fixed monthly amount for the use of the equipment and the energy that it produces each month, so even if your panels produce more energy for you during some months than others you still owe the company the same amount and vice versa.
While this may be off-putting for some - it is a perk for those who prefer the predictability of a set cost.
With a solar PPA, you pay a fixed price per kWh of energy that the panels generate, which means that you only pay in accordance to how much you actually produce for yourself with the equipment.
What You Can Expect to Save
Considering the fact that in most cases PPAs require zero money down, the savings are more than worth it. When all is said and done you can expect your power purchase agreement to save you between 10-30% on your energy costs each month.
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