Ppa vs owning solar

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4 FAQs about Ppa vs owning solar

What is the difference between a solar lease and a PPA?

While leases and PPAs share the same basic structure—you pay for solar electricity, the company owns the system—they differ in how you're charged: Solar lease: You pay a fixed monthly amount (for example, $230 per month) based on your system's estimated annual production. Your payment stays consistent year-round, making budgeting straightforward.

What is the difference between a PPA and a solar panel?

You purchase the energy produced by the panels at a predetermined rate. In contrast, owning solar panels means you invest in the equipment and installation yourself. While PPAs require no upfront costs, ownership allows you to benefit from government incentives and tax credits.

What is a solar power purchase agreement (PPA)?

Solar Power Purchase Agreement (PPA) and owning solar panels outright are two distinct options for accessing solar energy. Understanding their key differences is essential in making an informed decision. Your contract with a solar provider installing and maintaining your property's panels is in a PPA.

Is there a true-up in a solar PPA?

PPA = most commonly, there is no annual true-up in a solar PPA whose payment fluctuates each month to reflect the actual energy produced in that period. However, there does exist level-payment power purchase agreements, in which case true-ups or adjustments will usually apply.

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