Hellow guys, Welcome to my website, and you are watching What's the Difference Between a Solar Lease and a Solar PPA (Power Purchase Agreement)?. and this vIdeo is uploaded by Rob Freeman | Securing The Built Environment at 2021-01-24T18:25:10-08:00. We are pramote this video only for entertainment and educational perpose only. So, I hop you like our website.
| Name | What's the Difference Between a Solar Lease and a Solar PPA (Power Purchase Agreement)? |
| Video Uploader | Video From Rob Freeman | Securing The Built Environment |
| Upload Date | This Video Uploaded At 24-01-2021 21:25:10 |
| Video Discription | https://robfreeman.com/solar-ppa-vs-lease/ - The differences between a solar lease and solar PPA are very subtle because a solar lease and a solar power purchase agreement (PPA) are very similar... But what are the differences, specifically? And do solar leases and PPAs make sense when compared to purchasing a commercial solar system outright? A solar lease and a solar PPA are similar in the sense that both are strategies that real estate owners may use to get solar on their roofs for no money down. In the case of a solar PPA you are entering into a long-term energy purchase contract with a solar developer or solar contractor... A PPA contract may have a term of 20 years. Each month you will pay an amount for the renewable energy that the solar system generates... That's it. It SHOULD BE less expensive than what you would buy from your utility. In the case of the solar lease, you will also not have to come out of pocket to buy the solar system. However, you are not entering into an energy purchase agreement, you are entering into an equipment lease, almost like leasing a car. You get to use the equipment for a period of time, usually 10, 15 or 20 years. During that period you will pay a flat fee each month to use the equipment to generate energy for your building. The flat fee should not change, except for perhaps some annual escalation in the cost of the lease, perhaps pegged to inflation, or 3%. In most cases, if you can afford to purchase the solar system outright, you may want to evaluate this as an option. The reason that a solar purchase is preferable to a PPA or a solar lease is that you will own the solar system and can get the tax benefits of the solar investment tax credit (ITC), as well as any accelerated depreciation, SRECs, ZRECs or other incentives that may be available in your state or town. The payback with a purchase or financing of a solar system should be much quicker, typically 5-10 years, vs. 20 years or never with a solar PPA or solar lease. |
| Category | Education |
| Tags | solar lease | solar PPA | solar power purchase agreement | solar lease vs. PPA | should I buy or lease a solar system | downsides of a solar lease | downsides of solar PPA | what is a solar lease | what is a solar PPA |
