(210) 401-9030

Solar PPAs: Are They Worth It?

Solar power’s an investment, a seed planted into your home that over time, generates rapid ROI and creates many benefits for you and your family. Investing into your home holds a great deal of importance, but what does that investment look like if you didn’t really “own” your solar panels? A Solar Power Purchase Agreement (Or PPA) has been an option for years, but still not commonly known. Let’s dissect the term and understand the pros and cons.

What’s a Solar PPA?

Best solar installations in San Antonio
Click the image to see the different ways to install solar panels.

A Solar PPA refers to a type of agreement where the homeowner agrees to allow a solar company to install solar panels on their property. A PPA only charges the homeowner for the power they use and charges are based on the measured metering the solar system produces, typically at a lower price per kWh than the utility company. This may not always be a guarantee though. If net metering’s provided by your utility company, any credits back into your account for exceeding energy production may not go to you.

Know the Details.

Power prices can fluctuate regularly, so there’s no say as to how much every individual will save. Do the research and note every detail. Luckily, Solar PPAs aim to save you money. Look at electricity usage, solar panel production and what terms you must abide to.

PROS for Solar PPA

You’re Not Paying for the System: Though many solar system agreements come with finance options, not having to pay for the solar panels can drive more interest to a client.

You’ll Know the Exact Amount You’re Paying: Your PPA outlines the price per wattage cost, so you’ll know the prices to pay at all times. Knowing power cost fluctuations won’t happen during your agreement term provides peace of mind.

The Solar Company Handles the Repairs: System costs and maintenance should not be of your concern. The Solar PPA provider handles regular maintenance of the panels.

CONS for Solar PPA

You Don’t Own the System: A Solar PPA means giving the company your roof to use. The solar system belongs to them and so do homeowner solar incentives. You won’t benefit from the 30% Federal Tax Credit come tax season.

25 Years of Pain: With a Solar PPA, your roof’s bound to those solar panels for a 10 – 25 year agreement. You pay for the agreement till the term length’s fulfilled, then the company takes the panels back.

Good Luck Selling Your Home: Although solar panels are of interest to most people, selling your home means sending that PPA over along with it. Buyers will question said agreement they’re getting into so be aware.

Solar PPA = 2 Electric Bills

Not having ownership of both a Solar PPA makes selling your home quite the challenge. Having 2 electric bills will haunt you also if exceeding power usage in your home. “If I’m going solar, why do I have 2 electric bills?” The first bill gets issued by the company providing the solar panels. The company bills you for every kWh generated, regardless of whether it’s used or not. The second bill comes from your utility company which covers basic grid connectivity costs and any extra power consumption. 

{"question":"A solar PPA agreement entails:","answers":["Owning solar panels","Allowing a company to use your roof for their gain","Access to 100% of the electricity your panels produce","Free electricity"],"correctAnswer":1,"bgColor":"#e3e5e5"}

Think About the Future

We don’t really know what the next 5 years will look like, or even 10. Agreeing to a 20+ Year power purchase agreement for solar will be extremely difficult to get out of if the future doesn’t work in your favor. When purchasing your solar system you’ll be granted the many benefits starting day 1, which includes tax incentives, warranties and even future add-ons if you want. With a PPA, you’re leaving thousands of dollars on the table for the solar company to take!

Final Thoughts

Many of us understand the importance of taking full ownership of our property, including what gets installed on or into our property. If a long-term commitment where you’re renting out your roof to a company sounds like something you’re okay with, a Solar PPA might be right for you. No matter the situation, bring up your solar interests in your FREE consultation with Solar Edge Pros. If a PPA continues to check all the boxes for you, we’ll help refer you to the right company. 

Your Local Solar Installer in San Antonio

Solar Edge Pros is a trusted leader in the solar energy industry. Since 2005, we have provided solar energy solutions to over 5,000 Texas residents making the switch to cleaner, greener, cheaper, solar power. We believe in the positive effects of working hard, treating people with respect, and doing the right thing. Our values transfer to both the customer experience as well as the culture within the Solar Edge Pros Family. 

Share this post...

Meet The Author

John Garcia

John Garcia

John's been employed at Solar Edge Pros for 7 months and since then moved up from a Front Desk Receptionist to now a Content Creator for the company. His passion for creating is not something he discovered while in the solar industry, of course. Since High School, John's passion for poetry, music, socializing and video editing remains his constant motivators for making an impact on his career and happiness. If John isn't coming up with out-of-the-box ideas for solar industry content, he's at home making music and gaming.

Recent Posts

New Braunfels home with solar panels on the roof

How to Go Solar

Selecting the right solar company for your solar needs is a crucial step in ensuring a successful solar installation. The last thing you want is

Read More »
Energy Consultant next to Homeowner that went solar holding a pair of large scissors

Battery Backup FAQs

Does my home qualify for battery backups? All residential properties can have backup batteries installed. However, some properties may require additional electrical upgrades. Meeting with

Read More »

Download Our Free Guide

We created a guide titled, “Solar Done Right: A Buyer’s Guide” to help you understand the pros and cons of solar panels on your property and how to get the greatest bang for your buck! Enter your email and get the free guide.

Solar Done Right Homeowner's Guide
Solar Done Right: A Buyer's Guide

We will be in touch soon!

Want to find out if you qualify for the solar program?

Answer this form and we’ll let you know at your selected time.

Property Information
Electric Bill Information
Upload Electricity Bill (optional)
Schedule On-Site Consultation