A solar power purchase agreement – PPA – is a way to use solar energy in your home without the initial high costs of the purchase and installation of a PV system. It is a third party ownership model, wherein the system owner installs and maintains the PV system on the customer’s property.
The customer enters into a contract to buy the electricity generated by the system, but not the PV system itself. The price for the electricity is equal to or less than the grid price.
The PV system is connected to the grid, and if the local utility has a net metering arrangement, the owner of the PV system collects any credits for electricity funneled into the grid.
PPAs can last from 6-20 years, making them suitable for the longer-term. This arrangement is suitable for small businesses, homes and landlords of rental properties who want to provide solar power for tenants.
With some specific changes to the terms and conditions of your home lease agreement, power purchase agreement can be a viable option for renters.