Solar Power Purchase Agreements (PPAs)

If you prefer to install solar modules (i.e., panels) on your property and there is sufficient roof space (without obstructions) and/or ground area (open grass or paved parking lots), there are two primary options for doing so. The first is to pay the upfront costs for installing the solar system and owning and maintaining it yourself. As such costs are often beyond the budgets of many of those wishing to install solar (e.g., individuals, schools, religious communities, businesses, etc.), another option is to allow a solar provider to invest in and install the solar system, after which you would purchase the electricity you need from them at an agreed-upon fixed, and often reduced, rate through a long-term contract (~10 - 25 years). The provider will own the system and is responsible for maintaining it and ensuring that it is operating at peak performance.

Advantages and disadvantages of installing solar through a PPA include the following:

Advantages

• immediate energy savings

• zero upfront costs

• fixed & reduced energy rates

• maintenance and performance risk handled by provider

• supports your sustainability goals

Disadvantages

• someone else owns the solar system

• cannot take advantage of tax credits or other incentives

• little or no say in the brands of equipment installed

• limited control over the operation of the system

A more in-depth explanation on how a PPA works is provided in the video below:

https://youtu.be/wy9hhd2ZuK4?si=t2ceVEbGwPB9mktt

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Helpful Hints

Consider whether you would like to have solar modules installed on your property, and if so, whether your budget allows you to purchase the system outright. If not and if you prefer not to have to worry about maintaining the system, consider looking into a PPA. Note: If you are a Catholic nonprofit, Catholic Energies is an energy advisor and solar development service that can advise you on how begin the process.