Power Purchase Agreement (PPA)

A Power Purchase Agreement is very similar to a solar lease. You will receive free solar panels on your roof. The biggest difference is that with a power purchase agreement you do not have a set monthly bill. Rather you have a set electricity rate at which you buy the electricity from the solar company. This rate is a discounted rate from regular electric rates. The upside to signing a power purchase agreement rather than a solar lease is that if you use less electricity, than you pay less. The downside is that you will not qualify for the investment tax credit (ITC).