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  • Five Dirty Secrets About Using a Solar PPA or Lease

    Posted by Todd Filbrun on Fri, Sep 28, 2012 @ 10:38 AM

    A solar PPA (power purchase agreement) may seem like a good idea on paper, but when you really dig into the details you will discover some dirty secrets that providers don't want you to know. Unlike other sources of power, solar allows you to get a return on your investment over time. However, the type of financing you choose will impact how much of a return you can get, and a solar PPA is one of the least favorable financing options available. 

    If you are considering a solar PPA, make sure you understand these five actors before you make a decision:

    1. Your rates will increase every year - While the monthly payment for the first year may be appealing, you will have a steady rate increase of 3-6% each year. By the final year of your agreement, your monthly payment can actually become quite high. Although the rate increase is meant to account for inflation and increasing energy costs, you are subject to a flat increase no matter how much energy costs increase or decrease.
    2. You must have a high credit rating - Power purchase agreements generally require excellent credit ratings. If your credit is not good enough you may not be eligible, or your annual fixed rate increase may be higher.
    3. You have no control over the installation - The solar provider decides what type of system to install, how much capacity you need and which features are included.
    4. Affects the deed of your property - Although, it is technically not a lien, a document known in California as a "notice of independent solar energy producer contract" will be filed against your property at the county recorders office; and acts virtually the same as any mechanics lien. For instance, if you try to refinance your home you will find that this document will first have to be cleared from title; meaning your solar company would have to let you out of the lease and remove the equipment before you could proceed. If you wish to sell your home the buyer would have to agree to take over the lease, or you would have to buy your way out of the lease prior to the sale.
    5. Fixed price is not always in your favor - It might seem appealing to always have the same monthly electricity bill, but fixed prices mean you pay the same rate even if you consume less.

    If you don't have the cash to purchase a solar power system outright, the best alternative to a solar PPA is a solar loanWith zero money down and fixed rate financing, you'll own all the equipment thus, adding value to your home, keep the tax credits and rebates for yourself, and enjoy the fullest extent of your solar savings. This means you will only pay for the grid electricity that you actually use, and if you produce more than you use, the power company will even pay you.

    Kurios Energy's green energy loan gives you solar for zero down, and allows you to keep all the finacial benefits for yourself. There is no lien or recording required, so no restrictions will be placed on you or your property. You can start producing clean energy, saving money, and add value to your  home today with no money down! Learn more by downloading our ebook today!

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