Power Purchase Agreements are powerful tools when used in the right circumstances.
Areas with high utility rates, strong incentives, and ambitious Renewable Portfolio Standards are usually excellent candidates for PPAs.
You pay $0 down for your solar installation and pay off your system by purchasing the electricity it produces.
Solar PPAs usually offer a lower electricity rate than you are currently paying; however, PPA prices depend upon many variables and may not provide immediate savings.
Power Purchase Agreements
Many customers use Power Purchase Agreements to hedge against rising utility rates.
Electricity rates have risen at a 2.68% annual rate over the past 20 years. PPAs provide a guaranteed price for the electricity produced, so you and your organization can rest easy when it comes to rising prices.
PPAs are generally long-term agreements; 20-30 year terms are not uncommon. Investors and developers handle all maintenance and insurance during that time.
Buyout options are typically included in traditional PPAs, but if you plan to purchase and own your solar panel system, consider using Balance Solar's Prepaid PPA to take advantage of the Federal Investment Tax Credits!
For more information on PPAs, reach out to the Balance Solar team!