solar power purchase agreement

A solar power purchase agreement (PPA) is a contract where a third-party company installs and maintains solar panels on a property but owns the system. The property owner agrees to buy the electricity generated at a set rate, often lower than utility rates, for a fixed period. This setup allows the owner to benefit from renewable energy and cost savings without upfront installation costs. After the agreement ends, ownership of the solar system may transfer or be removed, depending on the terms. PPAs are a practical way to access solar energy with minimized financial risk.