What is a PPA?

29 Jul 2020

Corporations, municipalities, and non-profits spend a lot of time looking for new ways to save money and commit to sustainable initiatives. However, those two needs often don’t mesh. Luckily, going solar no longer requires a large upfront cost with a long payback period, as solar energy has largely moved away from the cash purchase model. Through a power purchase agreement (PPA), customers now have no upfront costs, and can see energy savings on day one.  

What is a PPA? 

solar power purchase agreement (PPA) is a contract where the customer agrees to purchase  electricity from an onsite solar energy system that Sol Systems finances, constructs, owns, and maintains, removing the financing and upkeep burden from the customer. The electricity being sold back to the customer comes at an agreed-upon, guaranteed, fixed rate ($/kWh) over a set number of years (often 15-25 years), often at a rate much cheaper than retail electricity prices. This means guaranteed energy costs, cheap, clean energy, and absolutely no surprises.  

How does a PPA Work? 

A solar PPA with Sol Systems is simple: 

  1. The customer signs the PPA with Sol Systems 
  2. Sol Systems designs, constructs, and installs the system 
  3. We sell you the cost of energy at a fixed rate ($/kWh) over the course of 15-25 years, even if electricity prices soar, you’re locked in 
  4. We monitor and maintain the system, while you save money 

Benefits of a PPA 

  1. Zero capital costs upfront  
  2. Benefits with low risk  
  3. Long term sheets 
  4. Savings are immediate with locked in, low rates of electricity 

Do I qualify for a PPA? 

Interested to see if you qualify for a PPA? Let us help you explore our options. 

Why choose Sol Systems as your solar PPA provider? 

Sol’s guaranteed long-term, price stability offers customers the ability to save money while committing to a clean energy future. With over $750 million solar installations financed, Sol Systems promises the most affordable option for our customers with proven results. 


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Claire Siwulec

Claire Siwulec