Have you heard of a solar company asking a client to sign a contract? It’s become an increasingly popular concept in the past few years to get what’s known as a power purchase agreement, and it may be a better alternative for some homeowners over purchasing your solar panels outright. At SEM Power, we’ve helped many Florida families transition into the world of solar power and can help you get a better understanding of what a power purchase agreement consists of. Many solar panel companies in Florida may ask you to consider one, so it’s important to understand the specifics before diving in.
What is a Power Purchase Agreement?
The simplest way to look at a power purchase agreement is as a solar power lease. Solar panels can ultimately help homeowners save money in the long run by reducing their electricity bills considerably as the panels work to power your home during most of the day. That said, the initial cost of installing these panels is actually quite high and can be a deal-breaker depending on your budget. Enter the power purchase agreement: a lease where the solar panels are owned by the installer and are paid off gradually. There are some advantages to a power purchase agreement:
- All the benefits of solar power
- Solar panel is an energy source that’s better for the environment, letting you live a greener life. In addition, it can reduce your power bills, increase the value of your home, and provide for your family the inherent benefits of going solar.
- No or low upfront costs
- Unlike purchasing your own solar panels directly for a high cost, you don’t need that initial cost sitting in your bank account to begin reaping the benefits of solar energy.
- Limited risks
- Because the panels are leased and not owned, there’s the added benefit of the owners taking care of the solar panels’ system performance.
Should You Sign a Contract with a Solar Company?
This is a question that ultimately comes down to the individual homeowner. There are many factors that should be taken into consideration, such as the funds you have available to spend on a project like installing solar panels, your current electricity bills, how effective the location of your home is for generating solar power, and a few others to say the least. Many solar panel companies in Florida may offer to provide you with a free estimate of the impact solar energy will have on your home based on your location and energy consumption. That is a great place to start as you’ll be able to see a projection of what your monthly savings might look like, and that can help you make the decision right for your home.
Contact Us for More info
Whether you think a power purchase agreement or purchasing your own panels is the best decision for you now, the first step is contacting a solar company near you and inquiring about a free estimate. When considering solar panel companies in Florida, SEM Power has been trusted by many homeowners with their solar installation processes, and we can help you too. Contact us today for more information about going solar.