A power purchase agreement (PPA), is a contract between two parties, one which generates electricity (the seller) and one which is looking to purchase electricity (the buyer). The PPA defines all of the commercial terms for the sale of electricity between the two parties, including when the project will begin commercial operation, schedule for delivery of electricity, penalties for under delivery, payment terms, and termination. A PPA is the principal agreement that defines the revenue and credit quality of a generating project and is thus a key instrument of project finance. There are many forms of PPA in use today and they vary according to the needs of buyer, seller, and financing counter parties - we here at Solar Home Company make that possible.
Solar loans are a great solar panel financing option if you want to buy your system. With many solar energy loans, you can finance the entire cost of your system. These loans may be secured (using your property as collateral) or unsecured. NOW! Why wait?
- Your monthly savings on your electric bills should be greater than the loan’s monthly payment, allowing you to start saving money fast.
- Save 40 to 70 percent on electricity costs over the lifetime of your system, as compared to doing nothing, by choosing a loan as your solar panel financing option.
- Solar loans have the same basic structure, terms and conditions as other home improvement loans. Some states even offer subsidized solar energy loans with below-market interest rates.
- By buying your system outright, you are eligible for financial incentives like the federal investment tax credit (ITC). Interest on secured solar loans may also be tax deductible, which means additional savings on your income taxes.
Some families want to take advantage of the incentives surrounding a straight cash purchase, this involves paying the entire cost for a solar system for your home out of pocket, and comes with wonderful benefits. The incentives vary based on the size of your system, where your home is located and what rebates/tax credits you may qualify for, this is an excellent option to consider! Pretty cool, right?