How Does Solar Panel Billing Work?
Solar Power Purchase Agreement 'PPA' Bills Explained
Having a solar subscription allows you to receive the financial benefits of solar energy without having to buy a home solar system. A solar provider handles the installation and then renting the equipment to you at a fixed yearly rate. Meaning sells you the electricity the panels generate at a set price per kilowatt-hour Just like any other utility provider does. Over two to three decades, average electric bill savings can amount to thousands of dollars.
Solar PPA's typically last 20 to 25 years. During that period, your solar provider will carefully monitor your system’s hardware and performance until the term ends. Like leasing a vehicle, you then have the option to renew your agreement or purchase the system. If you choose not to renew, the solar provider will often remove the panels and restore your roof to its original condition at no additional charge.
Differences Between Solar Lease and PPA Billing
Households that choose to rent solar equipment have two primary choices: solar lease billing and power purchase agreements (PPA). Each offers its own advantages and benefits.
Solar Lease Disadvantages
The contract in a solar lease stipulates that your solar provider fund the financing, permitting and installation of a home solar system for little or no cost. It then charges you a monthly bill for its use during the length of your lease term.
Here are the main reasons we don't provide solar leases:
You're financing the total solar cost without owning the product nor getting the tax benefits.
Solar Leases often causes the solar provider to place a lean on your property for as long as you have the service.
Homeowners often run into problems transferring over the lease agreements and/or any left balance to the new owners prior to moving out.
Solar PPA Advantages
A PPA is a contract in which your solar provider handles the financing, permitting and installation of a solar system on your property for little to no cost. You then agree to purchase the power produced by the panels at a set price per kilowatt-hour.
Here are the main PPA futures:
There is a $0 out of pocket cost to you (no finance or lease) and no additional financial liability.
You simply pay a fixed lower monthly rate "price per kilowatt-hour" for electricity.
Solar PPA's often includes maintenance, repairs, system monitoring, roof warranty, and insurance for the duration of your plan.
With GPS Power Purchase Agreements, you are completely covered under a comprehensive warranty. PPA's pass down the incentives, rebates and tax credits to you in the form of a lower solar electricity rate. This makes it an ideal plan to secure long-term peace of mind so it feels like buying a system but without the hassle of dealing with IRS forms. It simplifies your life with bumper-to-bumper coverage over the life of the product.
Are Solar Lease and PPA Plans Worth It?
Solar energy is one of the best ways to offset your future electricity bills with low to zero upfront.
Rooftop installations have skyrocketed, and there are now nearly 1.8 million residential solar systems in the U. S. Every 90 seconds, a new homeowner is going solar somewhere in the country. With a PPA or lease, you can join the millions of households going solar with long-term peace of mind against rising electricity bills.
What Happens With Net Energy Metering?
Net Energy Metering (NEM) is a billing mechanism that allows you to store energy in the electric grid. When your solar panels produce more electricity than you need, that energy is sent to the grid in exchange for credits. Then, when your home solar system isn’t producing as much electricity as you need, you pull energy from the grid and use these credits to offset the cost of that energy. Check your local utility to see if NEM is available to you.
Peace of Mind for Years to Come
GPS’s solar PPAs spare you the high upfront costs of a home solar system. We offer you professional installation, maintenance, monitoring, along with insurance during the length of your contract. And if you sell your home, we guarantee a seamless agreement transfer for the new buyer/owner of the property.
Installing solar panels on your roof also helps the environment by reducing your carbon footprint. The environmental benefits, combined with the financial returns, make solar a smart choice.
If you’re considering a lease or PPA plan to get your new residential solar system, we recommend using GPS price calculator or request your complimentary quote today.