D2D glossary / Solar terms
What is a solar PPA?
Solar PPA: A solar PPA, or power purchase agreement, is a contract where a company owns the panels on your roof and you buy the electricity they produce at a set rate, instead of buying the system.
There are three common ways to go solar. With a purchase or loan, the homeowner owns the system. With a lease, the homeowner pays a fixed monthly amount to use it. With a PPA, the homeowner pays per kilowatt-hour produced, usually with a yearly rate increase written into the contract.
PPAs and leases run for many years and stay with the house, so the terms a rep must explain clearly are the starting rate, the yearly escalator, the length, and what happens when the home is sold. Reps are paid differently on each product, so ask how commission is calculated on each one.
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Solar PPA: quick answers
What is a solar PPA?
A solar PPA, or power purchase agreement, is a contract where a company owns the panels on your roof and you buy the electricity they produce at a set rate, instead of buying the system.