In effect, you have a power purchase agreement with your current utility company. Your utility sets the price and you agree to pay for what you use at that price. With a solar PPA, you agree to purchase the power the panels produce. The price is lower than the average price the utility charges you. Again, the advantage used to be: no money down for the equipment. These days, you can purchase a system, keep your tax credit, and pay nothing for 12 months. The disadvantages are similar to a lease: you’ll pay for 20 years and still own nothing, and there will likely be an escalator factor built into the contract so your cost will continue to rise every year.
What is a Solar Power Purchase Agreement (PPA)?