If you need someone to help guide you through the solar purchasing process and you’re looking for a solution that fits within your environment, Solar Gain is here to help. Our team has the experience necessary to not only point you in the right direction, but shepherd your entire solar installation so that you can start reaping the benefits right away. In this blog, we’ll talk about solar power purchasing agreements (PPAs) and how your team can make an informed decision for your unique facility.
What is a Commercial Solar PPA?
Have you ever rented an apartment? Think of solar leases and prepaid solar PPA in a similar way. They involve entering into an agreement with a specific solar leasing company entitling you to the benefits of the system for the duration of the contract. The company leasing you the solar system is entitled to the rebates, tax breaks, and all other financial incentives available with a solar panel system. Although customers won’t see the same sort of incentives, they can still benefit thanks to lower electricity rates.
Solar PPA vs. Lease: What’s the Difference?
Although both terms are used in concert with one another above, there is a key difference between the two. Rather than paying to rent a specific solar panel system, a solar PPA involves purchasing the power generated by the system itself at a set price (based on per-kWh). A solar lease entails paying a fixed monthly fee that’s calculated by using the estimated amount of electricity that the system will produce.
What is Included in a Solar Lease/Solar PPA Contract?
The terms included in such an agreement might initially make customers wary—the process of purchasing a system outright does seem more straightforward. However, there is more room for flexibility if the status of the person renting the system changes suddenly. Common terms included in solar leases and PPAs include:
- Monitoring
- Buying the system
- Moving properties (commercial or residential)
- Performance and maintenance
- Term length
There’s so much more in play than simply evaluating system performance. Make sure that you’re acutely aware of what kind of contract you’re signing up and how much leeway and flexibility you have in the event that your circumstances suddenly change.
What financing option is right for you and your solar system? Finding out what makes sense for your budget can be difficult if you don’t have access to all of the options at your disposal. Get the help you need with Solar Gain.
What About Prepaid PPAs?
Sometimes, a regular lease or PPA might not the financial option that makes sense for your facility. Prepaid PPAs allow developers to attract financial partners that can use the tax benefits that are otherwise forfeited by nonprofits, schools, and places of worship (and any other facility excluded by the ITC). The backer of the solar project effectively owns the system itself, but can still sell the energy generated to the non-profit.
How Does Solar Gain Come Into Play?
We know that renewable energy might be a big buzzword in your industry, but do you have the resources at your disposal to truly understand the implications? You need someone who’s experienced enough to help you actually navigate what it is that you’re attempting to accomplish. At Solar Gain, we do more than installation, operations, and maintenance. Our team works tirelessly from the jump to make sure your solar energy solution makes sense for you financially, helping to reduce your electric bills and save you money while still providing quality solar power that keeps you up and running.
Don’t let sky-high utility rates and a lack of knowledge surrounding tax credits combine to keep you down—choose a provider you can count on, every single step of the way.
What solar financing option works best for you? Whether a lease, PPA, or prepaid PPA fits best with your budget, it’s time to work with a solar provider that knows how to deliver what you’re looking for. Don’t let an outdated system or costly utility bill keep you from succeeding—get the powerful, customized solar solution your facility needs to operate more efficiently, and reach out to Solar Gain today.
