The Power Purchase Agreement (PPA) is the most popular way to go solar, as measured by the number of installations to date in California.
So, what is this PPA thing, and why is it so popular?
It’s no secret that solar companies will finance 100% of the cost of going solar. The PPA allows for the same. There are a few notable differences between the two, however.
Let’s consider an analogy. We all know that there are two ways to secure housing. We can buy a home or rent a home. Typically, it’s slightly more expensive to rent, and there are often small increases built into the lease over time. Your monthly rent will likely go up around 3% per year. On the flip side, when there is a problem, you call the landlord and it is their responsibility to handle and pay for any repairs.
When you own a home (with a mortgage), you usually have a fixed monthly payment and will eventually own the home, with no more monthly payments. You have a valuable asset, as well. But when things go wrong, it’s up to you to fix out of your own pocket.
Solar works the same way as the buying versus renting a home scenario above.
With a PPA, the solar company puts their equipment on your roof. You only pay for the power that the solar produces, and have no responsibility for maintenance or repairs. That is the responsibility of the solar company. There is no loan involved and your credit score does not reflect the solar panels. You are, in short, renting electricity at a significant discount to the cost of traditional electricity. No worry, no hassle, no fuss. Like renting a home.
At Aurora Energy, we believe that each homeowner deserves a thorough education about the different options available to go solar. There are multiple options available and each has its own pros and cons. The right answer for one isn’t necessarily the same right answer for another.
Let us help you determine the best program for your needs.