In this article, we talk about PPAs for solar and wind energy. A Solar Purchasing Power Agreement (SPPA) is a financial agreement whereby a third-party developer owns, operates and maintains the photovoltaic (PV) installation, and a host customer agrees to install the facility on its land and acquire the electrical power of the system from the solar service provider for a predetermined period. This financial agreement allows guest customers to obtain stable and often inexpensive electricity, while the solar service provider or any other party acquires valuable financial benefits, such as tax credits and revenue from the sale of electricity. AAEs can be managed by service providers in the European market. Legal agreements between the national energy sectors (sellers) and the distributor (buyer/purchaser of large quantities of electricity) are treated as AAEs in the energy sector. Solar leasing or solar AAEs is the best option or sometimes only. The process of solar walking can be a bit complicated for homeowners whose individual situation is not suitable for one model against another. Keep in mind that installing a solar installation on your roof is a considerable effort and can have a significant positive impact on your finances in the short and long term. That is why the decision deserves research. Do your own math. Talk to your friends and neighbors who have been to Solar, but remember that your situation may be different. Here at Baker, we pride ourselves on providing unbiased information about solar information, even if it means losing business to a competitor with a better solution to your needs.
We are happy to answer all your solar questions, even if you are not yet ready to go to solar energy. For someone who doesn`t yet have a thorough understanding of how solar energy saves money on their electricity bill, the difference between an AAE (Power Purchase Agreement) and leasing can be subtle and almost indistable. Solar leasing and solar AAEs are agreements by which the homeowner does not own the solar installation on their roof, he is in the possession of the leasing company or PPP. There are pros and cons between this model and a traditional system can select hosts to sell RECs connected to the local solar photovoltaic installation and buy in their place RECS other eligible green electricity resources to make environmental claims.