Solar System Purchase vs. Power Purchase Agreement
Long before there were any federal or state funds to help offset the initial investment of a residential solar system, installations were on the rise. Solar adoption has increased significantly since the inception of the federal solar tax incentive in 2006, which rebates 30% of the purchase price of the system. In 2007, the California Solar Initiative was implemented to offset all or part of the cost of installation in proportion to the system’s actual or projected performance. With all of this support from the government, it’s no wonder that more people have gone solar in the last two years than the last twenty years combined! A portion of these new systems were not purchased by homeowners however.
At the end of the day, buying solar is a great option because as soon as the initial investment has been recovered, homeowners have little to no electricity bills and receive their renewable, clean power on-site, virtually for free. The SPPA offers cheaper rates compared to grid electricity, little to no upfront cost, and provides a familiar utility-customer relationship. The “power plant” isn’t owned or maintained by the customer; they just pay a bill. Both scenarios are long term commitments, and there are advantages to both options. These advantages will be specific to the homeowners and their usage, location, and financial situation.
The best advice is to weigh the ups and downs of both choices as they apply to your specific means and needs to determine which is right for your home. As always, seeking professional advice will aid in your deliberations. Value-added solar retailers, such as gogreensolar.com, not only provide everything needed for the installation and operation of a solar system, but they have staff on-hand ready to assess your specific needs to tailor a solar solution to your home.
Whatever your choice, there is no doubt that solar electricity is the wave of the future. So… how will you choose to ride it?
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