What’s a PPA?

A PPA is a Power Purchase Agreement. It’s a financing model in which the solar installation company – in this case Solect – or a third-party investor would build and own the solar PV system on your property and then sell you the electricity generated at a pre-negotiated, discounted rate. The owner of the system is able to take advantage of all tax incentives, Solar Renewable Energy Certificate (SREC) revenue, and other benefits related to owning the system. Hosting a solar PV system and purchasing the power through a PPA is an excellent way for entities such as schools and non-profits to benefit from solar energy without using capital to purchase a system outright.