The Growing Affordability of Solar Energy

Horizon Solar is a Patch Brand Partner.

Black is the new orange. With the price of solar energy reaching an all-time low, more and more Californians are covering their homes with photovoltaic panels. Whether its promise of lower utility bills, simplicity, reliability or wide-ranging environmental benefits, solar power continues to grow in popularity as more Californians than ever are experiencing first-hand the advantages of renewable energy. However, some have hesitated in pursuing a solar panel installation because of the perceived high upfront costs and maintenance fees. The recent popularity of Power Purchase Agreements (PPA) is dispelling this perception among many and making the switch more affordable than ever.

What is a PPA?

A power purchase agreement (PPA) is a contract in which a power purchaser agrees to the installation of a solar PV system on their property and to purchase energy from an electricity generator for a predetermined period of time.

PPA Benefits

A solar power purchase agreement has many attractive benefits for homeowners.

1. No upfront costs: You’re not responsible for any upfront installation costs. The solar service provider takes care of the installation.

2. Reduced energy bills: A Residential PPA allows a customer to purchase energy at a lower rate than directly through their utility. Electricity rates in the U.S have increased by an average of 3% per year over the past 10 years. A customer on a PPA would not experience those increased rates because the PPA contract is at a fixed rate for a period of years. The PPA shelters the customer from rising electricity rates. For most people, that is a substantial savings.

3. Free repairs and maintenance: The solar PV system is fully maintained by the solar provider. If a panel should stop working or some part of the system needs replacement, the solar provider will cover all repairs over the life of the agreement.

4. Potential increase in property value: A solar PV system has been shown to increase residential property values. The long term nature of these agreements allows PPAs to be transferred with the property and thus provides customers a means to invest in their home at little or no cost.

What is the difference between a PPA and a Lease?

Solar Leases are similar to Power Purchase Agreements in that a third party pays for and owns the system, but with a Lease, the customer pays a fixed monthly fee that is not tied to actual energy use and is responsible for system performance and maintenance.

The following chart demonstrates the difference between a PPA and Solar Lease.

The most significant difference between a PPA and a Lease is what you are agreeing to pay for. Under a PPA, you are agreeing to buy the power generated by the system at a set per KWh price. However, with a Solar Lease, you are agreeing to pay a fixed rent lease payment for the right to use the equipment. If the system does not produce electricity you are still obligated to make the Lease payment. Whereas under a PPA, there is no payment if power is not produced.

We’re here to help. To experience first-hand the incredible benefits of switching to solar power and learn more about cost-saving finance options, visit http://www.HorizonSolarPower.com or call 844-765-2780.

About Horizon Solar Power

Since 2008, Horizon Solar Power has served as a premier designer and installer of residential and commercial solar systems in Southern California. Rated an A+ by the Better Business Bureau and ranked #7 in the 2015 Top Solar Power Contractors in the U.S., the company is backed by Oaktree Capital Management, a leading global alternative investment management firm. Horizon Solar Power has grown to be one of the regions most trusted solar installers through its passionate commitment to providing industry-leading energy savings and customer- centric solar solutions, delivered through superior and dependable service.

Visit HorizonSolarPower.com to learn more.