The concept of a solar lease and a power purchase agreement (PPA) can be a tough one to grasp for most new users of solar panels Fort Worth. There’s no reason to worry though. In this article you’ll find out everything related to these two concepts and be able to clear all doubts.
Solar PPA: let’s start our comparison by taking a look at Solar Power Purchase Agreements. The PPA option gives you a low upfront expense, generally $1000 or more. This agreement is usually binding for 15-18 years and can be transferred to a new owner or home. Solar PPAs can charge you a flat or periodically rising rate as per the agreement. Therefore you don’t have to pay the coal-fired rates; you only pay for the rates generated by the solar panels for house Fort Worth.
In Solar PPAs the company monitors your system and provides for maintenance and repairs. You don’t get any State rebates, tax benefits or Renewable Energy Credits. But instead, you have the opportunity to buy back later or at the end based on a stipulated price per watt. This is often open for negotiation. An excellent credit rating is needed to qualify for Solar PPA. Another benefit is that the deficiency of produced electricity is covered by electricity from the grid.
Solar Lease: Let’s consider the case of Solar Lease now. In the Solar lease, typically there is no down payment. The lease is applicable for 15 years or more, and can be transferred to a new owner or home. Solar lease doesn’t require you to pay for any electricity that your solar panels for home Fort Worth generates. You pay for the lease payment and any additional power that you require from the company. That means, although the solar power system comes free of cost, you have to pay the lease payment which rises 3%-4% a year. Compare that with the 5% flat rate you have to pay to the utilities company. The payment and maintenance costs are overseen by the company itself. Similar to PPAs, you don’t enjoy tax benefits, RECs or rebates. However, you do enjoy the late buy chance for a stipulated rate afterwards. You have to have an excellent credit rating here too. Another similarity with solar PPA is that the utility company offers you the use of the grid electricity when you’re inn need of it.
K. Spahler – Alternatex Solutions.
In the PPA, you pay for electricity generated by solar panels with some money down and get flat or yearly increases to PPA electric rate. In lease, you have no upfront payments and pay a flat lease rate that increases by a certain amount every year. In both cases you get the benefit of tiered rates. Both options are good for financing home solar panels Fort Worth at low prices and offers you plenty of benefits. You can choose either one because there aren’t much differences between the two.