Under a power purchase agreement you do not buy the system. A third party owns it and you pay for the electricity it produces at an agreed rate.
How it works
The provider installs, owns, monitors and maintains the equipment. You pay per kilowatt-hour produced, typically under a long-term contract with defined terms for rate changes over time.
Who it can suit
Customers who want no upfront cost and no responsibility for the equipment, and who do not need the ownership benefits that come with buying a system.
What to read carefully
Contract length, any annual rate escalator, transfer terms if you sell the home, and what happens at the end of the agreement. These are the clauses that matter, and they should be explained to you before you sign.
Related services
Solar production, bill offset and payment comparisons vary by home, usage, roof, shading, utility rate schedule and financing terms. Nothing on this site is a guarantee of savings. Pricing comparisons depend on system size, equipment, financing structure and contract terms. Any comparison is only meaningful between comparable systems and comparable financing.