Everything you should know about PPAs
In the world of solar energy, there are a lot of intricacies and details that consumers have to factor in before they invest in a new panel system for themselves, and there are a number of important considerations to be made when considering the installation of your own solar electric panels
One phrase thrown around a lot is Power Purchase Agreement, or PPA. Despite the complicated and overly technical name, it’s actually simpler than it sounds.
Here are the answers to a few questions you might have about PPAs:
What is it?
According to the U.S. Environmental Protection Agency (EPA), “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 roof or elsewhere on its property and purchases the system’s electric output from the solar services provider for a predetermined period.”
This arrangement creates an agreement between supplier and consumer: customers are able to save money on their energy costs, while the provider is able to claim other financial incentives like tax benefits and income that is generated by the sale of the energy provided by the solar paneling.
How do they work?
In order to power their homes, consumers purchase the services and power of a photovoltaic system without having to actually install the physical units on their property. This allows customers to save on the up front cost of paneling, determining permits and regulations allowances and the risk that accompanies the system’s performance. It is important to note here, though, that solar panels are very durable and low maintenance. Generally, once they are installed, there is very little that homeowners or building staff have to do by way of maintaining their integrity or functionality.
The benefit, in these cases, is that it affords huge opportunities to municipalities that offer solar energy to their customers in lieu of traditional power sources. There are also federal and state benefits that can be reaped from taking advantage of these types of systems.
What are the benefits for consumers?
Aside from the financial impact that going solar will have on your utility bill, as a consumer you will also be a part of a movement to a more eco-friendly way of generating energy. With your home attached to an off-site solar source, you will also see a surge in property value as your home will cost less to maintain.
If you are interested in Colorado solar leases
, contact Golden Solar today. We offer free on-site consultations, during which our engineers will discuss all your solar options with you.