Path-Q Solar

How does a power purchase agreement differ from owning solar panels?

Answer

Under a PPA, a provider owns the system and sells generated electricity under a contract; with ownership, the homeowner pays for the system and keeps its energy savings and associated ownership benefits.

Key points

  • A PPA shifts some maintenance responsibility to the provider.
  • Ownership requires more upfront or financing commitment.
  • Compare price escalation, term, transfer, and system performance provisions.

What it depends on

  • PPA price and escalation
  • Ownership cost and financing
  • Maintenance and transfer terms

Risks and trade-offs

  • A PPA may cost more over a long term.
  • Ownership carries equipment and performance risk.
  • Sale terms differ.

Information you may need

  • PPA contract
  • Ownership quote
  • Expected production and bill value

Your next step

What to do next

Compare total expected payments and sale/roof obligations over the period you expect to own the home.

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