Converting your home or business to solar energy might seem like an expensive option at first glance. For those looking to purchase their solar panels outright, the initial cost might be hard to difficult to afford, even though energy savings over time make up for the cost. Those who are not interested in this one-time payment may want to consider a loan. This is still a paid option though, just with payments spread out over time, and the possibility of incurring interest. But how does one receive free solar panels in Philadelphia? For those looking to enjoy the reduced cost of energy and to reduce their carbon footprint but do not want to pay for their solar panel system, there is an excellent option called a Solar Power Purchase Agreement, or Solar PPA.
What is a Solar PPA?
A Solar PPA is when a solar developer handles the planning, design, financing, permitting, and installation of a solar panel system on your home. As the host of the solar panels, you agree to the contract offered by the developer and pay a fixed rate for the energy produced. Instead of purchasing solar panels, you will buy the energy produced at a lower rate compared to traditional utilities while the developer collects on tax credits and the income from your energy purchases. In short, it is an option to have a free solar panel system installed on your home for no upfront cost.
Benefits of a Solar PPA
Besides the major benefit of getting free solar panels in Philadelphia, a solar PPA has several attractive benefits that come with free solar. To add to the savings, homeowners who receive energy from their solar PPA can reduce their monthly energy bill by up to 30%. In the PPA contract, a developer should include a section discussing what your fixed rate of energy cost is charged at a rate of kilowatts per hour. You will be protected should the local utility raise its energy costs. Another benefit of having a developer own the solar system is that they will be fully responsible for any service or maintenance required to keep the system producing at its maximum energy output. Finally, drawing your power from a clean and renewable solar energy source means that you will significantly reduce your carbon footprint. With over 60% of the nation’s energy being sourced from gas and coal, most of the energy that utility companies provide comes from non-renewable sources. A solar PPA allows you to simultaneously save money and the environment.
Challenges of Solar PPA’s
While a Solar PPA has its benefits, there are some important things to consider when deciding which solar plan is right for you. The first thing you should consider is how much you stand to save in the long run should you choose to finance or purchase your solar panels. Over time, tax credits and Solar Renewable Energy Credits, or SRECs, can add up and potentially save you more than a Solar PPA. While an increase in home value is generally considered a benefit when getting solar installed, it can also potentially raise your property taxes. Along with this, Solar PPA’s are usually presented in the form of a long-term contract. If you decide to sell your home, the buyer would have to enter into the contract or come up with a new deal with the developer. These contracts often include stipulations regarding new construction or landscaping that could prevent the solar panels from receiving sunlight. While these are things to consider when deciding which solar plan is right for you, they are minor and are shadowed by the benefits of having a solar panel system.
Why a Solar PPA Might Be Right For You
While paying nothing upfront for your solar panels is a huge benefit, you can save more in the long run when you finance or purchase your solar panels. This is largely due to the tax credits and SRECs that will save you a substantially larger amount of money than with a Solar PPA. If you do not qualify for a loan or are not eligible to receive SRECs or tax credits then a Solar PPA is your best option. Regardless of which solar plan you choose, going solar has many personal benefits that are in tandem with the advantages that solar energy has for the planet as a whole.
Get Started With a Solar PPA
Free solar energy is one of the leading alternative energy sources that is quickly being implemented. With an abundance of highly advantageous solar incentives paired with the variety of accessible solar plans, converting to solar energy has rapidly become the preferred choice for a sustainable energy source. Free solar panels in Philadelphia are a possibility with a Solar PPA. Whether you decide that a purchase, loan, or PPA is right for you, the team at Lumina Solar will professionally handle every aspect of the solar conversion process. Call or contact Lumina Solar to receive your free quote and begin your solar journey today!