Solar PPAs – What you need to know

Dec 14, 2021 admin No Comments 348 Views

#solarPPA #commercialsolar #solarpanels #Trilectsolar

Solar power purchase agreements (PPAs) are a popular financing option for those looking to start solar projects. PPAs allow you to install a system on your roof with no upfront costs.

What is a solar power purchase agreement?

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.

The developer sells the power generated to the host customer at a fixed rate that is typically lower than the local utility’s retail rate. This lower electricity price serves to offset the customer’s purchase of electricity from the grid while the developer receives the income from these sales of electricity as well as any tax credits and other incentives generated from the system.

PPAs normally signed for a long-term period, and the developer remains responsible for the operation and maintenance of the system for the duration of the agreement. At the end of the PPA contract term, a customer may be able to extend the PPA, have the developer remove the system, or choose to buy the solar energy system from the developer.

how does it work?

A property owner, also referred to as the host customer can enter a PPA with a solar installer with terms that range anywhere from five to 25 years. The solar developer will install the panels on the host customer’s roof, which will cover the home’s electricity usage.

If the solar panels produce more energy than the home needs, the extra kilowatt-hours will be sent to the utility grid. The good news is, PPAs allow you to take advantage of net metering benefits your utility offers, so you can wipe out your utility bill.

However, because the solar developer owns the solar system, and not you, they get to receive incentives like the tax credit, etc.

Benefits of PPAs to Solar Customers

The good thing about solar PPAs is that you don’t have to pay the upfront capital or maintenance costs associated with going solar, but you still get to enjoy the benefits of renewable energy, like a lower electricity bill.

You will also be able to take advantage of net metering.

Plus, you get the advantage of predictable energy pricing, since your contract will outline exactly how much you will pay every year. Your utility, on the other hand, can increase your electric rate however they want without warning.

Since you don’t own the system, you won’t have to worry about taking care of regular system maintenance or performance monitoring – the company you enter into the PPA with will take on this responsibility.

Trilect solar now offers Solar ppa for our customers

To learn more about it, get in touch with our team on 0800 850 888

Keywords: solar PPA, commercial solar, solar panels, Trilect Solar

ABOUT TRILECT SOLAR

Trilect Solar is a division of Trilect Services, New Zealand’s master electrician since 1997.

We are members of the Sustainable Energy Association of New Zealand (SEANZ) which offers additional peace of mind to our customers.

Trilect Electrical Services is a large electrical service company which is a member of the Master Electricians & Mastercraft network with 40 employees and a 20+ years history of customer satisfaction.

We do not use sub-contractors. All of the installations will be carried out by our experienced team.

Trilect Solar offers a customised energy plan that works for your home/ business.

Get started now by booking a free on-site consultation.

Request Your On-site Consultation

Or call us on 0800 850 888

www.trilectsolar.co.nz