Know the facts about Solar PPA’s
- A PPA is a Third Party Ownership option, meaning that you do not own the project. A third party pays for the installation on your property, owns the project, and sells the power it generates to you at a reduced rate
- Because you don’t own the solar array, you are not responsible for maintenance costs. PPA’s typically come with a warranty that matches the PPA term.
- A PPA’s payment structure is based on a fixed cost per kilowatt-hour generated. Since solar arrays generate more power in the summer than the winter, summer PPA bills are higher than winter bills. Every month may have a different cost.
- PPA owners typically place a UCC-1 filing on the property notating interest in the solar array equipment.
- PPA’s are considered an operating expense on your books (like a utility bill), not debt.
- PPA’s does not affect your DTI
- Can close and fund as quickly as 30 days from approval but depending on project can also take longer