Buying Solar Panels Vs Ppa

The main difference between buying and leasing a solar system is ownership.

Buying solar panels vs ppa.

Be the owner. Let s now talk about the differences between solar panel ownership leasing and purchase power agreements ppas buying solar panels. A solar ppa is a long term agreement between you and a solar provider and or installer to lease your roof in return for a lower energy bill. The installer will typically provide the panels installation and maintenance at zero cost to the homeowner and in return the provider becomes your new utility provider.

But the finances and ownership of your solar energy system will change depending on whether you decide to own them outright or not. Many solar installers advertise solar leases or power purchase agreements solar ppas as an easy way to reduce your electricity bill. Leasing solar panels ppa vs. Leasing solar panels with a ppa power purchase agreement a recent development in the solar financing industry was the creation of a power purchase agreement wherein a financier finances the installation and the homeowner pays them in return over 20 years through a new kwh payment structure.

The main practical distinction between buying and leasing a solar pv system is in ownership. Both solar leases and solar ppas are very similar making it hard to tell the difference between the two. If you buy a solar panel system you own the system either outright if purchasing with cash or after repaying your solar loan. A solar power purchase agreement ppa is a financial agreement where a developer arranges for the design permitting financing and installation of a solar energy system on a customer s property at little to no cost.

If you lease the system or sign a power purchase agreement ppa a third party owns the solar panel system. Installing solar power through a ppa comes at the expense of solar rebates like the federal government s renewable energy tax credit which can add up to thousands of dollars of cost relief. Buying solar panels requires an investment and more decision making than leasing but over the long term the benefits of owning your system are hard to beat. The developer sells the power generated to the host customer at a fixed rate that is typically lower than the local utility.

If you are interested in a simple low maintenance option for installing a solar energy system on your home leasing solar panels is a good option for you. That can raise your return on investment significantly meaning it may be much longer until your equipment is technically profitable. Best ways to pay for your panels cash. If you buy a solar panel system you own the system either outright if purchasing with cash or by financing the investment with a loan.

Buying solar panels vs. Solar leases and solar power purchase agreements ppas are two kinds of solar financing options that make it easy to install a solar system on your roof.