What is a Solar Power Purchase Agreement (PPA):
A PPA is a long-term contract between you and Horizon in which you agree to purchase the solar power produced based on a low fixed rate that is typically less than what your local utility company charges. Horizon has full ownership of the solar energy system and is responsible for installing it and maintaining it. You simply pay for the power it produces, making your job considerably easy.
Since a PPA is a form of a long-term lease, different installation companies may consider a variety of different factors when determining whether your qualify, such as your personal credit score, your overall monthly energy bills, and the amount of available sunlight on your property. For example, if your property has a lot of shade and receives minimal direct sunlight, or if you already enjoy a relatively low monthly energy bill, then a PPA may not save you a significant amount of money and may not be the option most suited to you.
In the event that you are a good candidate for a PPA and you decide to move forward with one, you will sign a contract determining the terms and length of the agreement. At the end of the PPA, you will have the option to either extend the agreement or purchase the system..
In the event you sell your home, you can either transfer the agreement to the new owners or pay it off and include its cost in your home sale price.
Advantages of a PPA:
- Affordable and flexible: Pay little to $0 down with low, fixed monthly payments.
- Worry-free: Horizon installs, maintains, and repairs all equipment for the duration of the agreement.
- Fixed costs: Protect yourself from any future utility rate spikes.