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What is a Solar Power Purchase Agreement?

Installing rooftop solar panels

Have you ever heard of solar power purchase agreements?  If not, you are not alone!  Much like a solar panel lease, this contractual arrangement allows you the benefits of rooftop solar panels without the up-front cost.

A solar power purchase agreement usually includes terms under which the manufacturer or contractor installs, maintains and continues to own the solar energy system on your property.  You are billed a monthly fee for the solar electricity, which is less costly and more green than grid-based electricity.

As with any contract, you’ll want to review the terms carefully so you know what to expect under a power purchase agreement.  Pay particular attention to insurance, hold harmless and termination provisions.  You may want to have a lawyer review before signing.

Other than that, solar power purchase agreements are an easy, convenient way to switch to renewable energy!

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