A solar power purchase agreement (PPA) is one of the most affordable ways to take advantage of solar energy. In this arrangement, a solar energy company agrees to install panels on your property and you purchase the solar energy generated at a fair rate. Discover the solar PPA cost so you can determine if it is a worthy financing option.
Average Solar PPA Costs
Entering a PPA financing agreement allows you to spend little to no money upfront to enjoy the benefits of solar energy. Instead of paying to install and maintain the solar panels, you leave it to your solar energy company to handle the hassle. The PPA provider takes care of all costs, including buying and installing a complete solar energy system on your premises. Furthermore, the PPA provider maintains and fixes issues on electrical connections, inverters and panels.
As a beneficiary of solar PPA financing, you commit to purchasing and using the solar energy generated. A solar PPA financing agreement doesn’t just eliminate the financial burden of owning and maintaining solar panels, it helps slash your energy bills by 10-20 percent.
How Much Can You Save With a PPA?
The exact amount you’d save from a solar PPA depends on the following factors.
1. Your Utility’s Cost of Energy
Typically, the amount you’d save from a PPA depends on your utility’s current cost of energy. For instance, if your utility charges a higher rate for electricity, you could likely save more by adopting PPA solar. The reason is that the difference between expensive utility power and solar energy would be significant.
2. Your Household Energy Consumption
Your household energy consumption is another factor that dictates the amount you save with a PPA. Typically, homeowners with high electricity consumption rates are more likely to get significant savings from a solar PPA.
Reasonably priced solar energy can reduce a huge percentage of the money you would have spent on grid power. Even better, many PPA providers give competitive rates to heavy energy consumers.
3. Cost of Energy as Established in Your PPA
Energy companies charge varying rates for solar power. For this reason, you are likely to save more if you find a solar PPA provider with competitive deals. Conversely, you wouldn’t save much if your PPA provider sells solar energy at premium rates. This is the reason it matters to shop around for an affordable provider.
Take Advantage of Solar PPA to Cut Your Energy Costs
While a solar PPA is not entirely free, the cost is much lower than grid power. Partnering with a dependable, elite-certified energy provider like Solar Optimum can help ensure you get the most valuable PPA financing option. Download our Ultimate Guide to Going Solar to learn more about your other solar financing options or contact us today to get started.
