Solar FAQs Part 2 - The Cons of a PPA




In our last blog we reviewed some questions home owners might ask before delving into options for solar energy. Another topic that comes up frequently is PPA

What is PPA? PPA is a leased solar system. It stands for Power Purchase Agreement and they are packages that are meant to be very attractive with little or no cost to the consumer up front. 

Homeowners, beware! There can be unforeseen circumstances with these kinds of agreements and especially for your roof. Sean Featherstone, Co-President of Castone breaks down the cons of a PPA for you: 

  1. You need to make sure that your roof is in good condition BEFORE you install a PPA - Solar panels are rated at 25 years, and most steep sloped roofs are rated for 30 years - therefore you will have an overlap of needing a new roof unless your roof is less than 5 years old. 
  2. You cannot touch your roof or manage issues involving your roof without first removing the solar panels, which in most cases can only be done by the PPA owner.
  3. You will not be able to price compare the removal of PPA solar panels - you will have to go with the price the company who owns the panels quotes you. 
  4. You do not get the federal tax credit of 26 percent
  5. You end up paying much more for a PPA than if you were to purchase solar yourself or even finance 

It's important to remember that one size doesn't fit all - you don't want any liability for your roof based on adding solar to your home. Our goal as a company is to determine what your energy bill is, get you a new roof or refurbished roof before we install your solar so that you have one warranty for both with one company - and to help you leverage that tax credit. If we can do all of that for under your current PG&E bill, an even break or a little over you can have return of investment after 10 or 15 years and still have another 10 years of profitability. 

 

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