Power Purchase agreements have gained enormous fame in the past few years. A Power purchase agreement work in a simple manner. A solar panel provider installs the solar equipment on your property, maintains it, keeps its ownership to the company and you pay for the energy that the solar panel produces. There was a time when mostly PPAs were only available to large commercial entities but today a lot of home owners have been provided with these agreements as well.
Rates of various power purchase agreements vary. While sometimes a PPA’s rate is flat, other times it will slightly rise over the years. However, the best thing about PPA rate is that unlike utility rates a PPA rate is pre-negotiated. This means that throughout the life of the power purchase agreement you will be paying a pre-negotiated amount and will not be asked for additional charges.
Solar panel lease is similar to a vehicle lease. You pay a monthly fee to lease equipment that someone else owns. However, solar lease highly differs from solar power purchase agreements. While with solar power purchase agreements you pay for the energy produced by the equipment, with solar lease you pay for the equipment itself.
Solar lease options are great for residential homes for a number of purposes. With leasing options, the residents can avoid making a large upfront investment in solar panels and get started for little to no money. If your lease plan allow you to make monthly payments less than the payments of your regular electrify bills, the purpose of acquiring solar lease is fulfilled.
Due to the benefits of solar panel usage, private solar solution providing companies aren’t the only ones offering solar financing options. A number of government departments offer various financing options to the consumers. Some of the many departments providing solar financing options include the U.S. Department of Energy, U.S. Department of Housing and Urban Development, U.S. Department of Veterans Affairs and U.S. Environmental Protection Agency.
Each department providing solar finance options focus on the development of particular areas in the US i.e. the US Department of Agriculture focuses on providing the solar lease for the purpose of rural development expansion, the US Department of Housing And Urban Development offers loans to those who qualify for FHA, EEM or Title I mortgages, and provide them solar thermal heating and photovoltaic systems.
Thus you can choose from any of the above mentioned solar financing options to suit your needs and requirements. All of these options are extremely useful because they allow you to avoid paying for dirty coal-fired grid power with rates that can elevate anytime and by any amount. By acquiring a solar system using any of your choice’s solar financing option, you can make sure that you are paying for the clean, renewable energy through environment friendly solar panels.