Definition
In a solar PPA, you buy the electricity generated by panels the solar company owns and operates. You lock in a fixed rate, protecting against future rate increases. It's a middle ground between full leasing and ownership—no upfront cost but you're locked into terms.
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PPAs provide clean energy with no upfront costs or maintenance. PPAs lock in electricity rates reducing future cost increases. PPAs are complex contracts requiring careful review. PPAs affect property resale; transferability must be verified.
Pro Tip
Review PPA terms carefully; unfavorable contracts can make properties difficult to finance or resell. Ensure terms align with your long-term plans.
Example
A property with 25-year solar PPA providing 30% of electricity at fixed rate with escalation clause.