Solar PPA

Power Purchase Agreement (PPA)

Another possibility to lease a solar power system is through what is called a Power Purchase Agreement (PPA). With this method of going solar, you do not own your solar power system. Instead, you lease the solar panels placed on your property and use the energy they generate, but the system is owned by another party. As a result of not owning your solar system, you do not qualify for the Investment Tax Credit (ITC).

You pay for the energy similar to how you currently work with your local utility except that you have set predictable rates for the life of the agreement. You host the solar equipment at your facility or site, but the Power Purchase Provider who owns the system receives the tax benefits and is responsible for all the operations and maintenance of the system.

When your solar lease term ends, you can choose to extend the arrangement for another term, remove the solar system from your property, or buy the system from the owner at fair-market value.


Making the decision to go solar is the first step to gaining energy independence.