With the cost of living rising on a daily basis, frugal homeowners are always searching for ways to save extra money and maximize their income. A little known secret is the ability to purchase solar electricity at wholesale prices! Want to know how? Check out this cool article that will show you can save thousands of dollars!
What is a Pre-Paid Solar Power Purchase Agreement?
A Pre-Paid Solar Power Purchase Agreement, or Solar PPA for short, is an arrangement with a solar company that allows you to purchase all of the electricity that you need before the energy is produced. Think of it as ordering a guaranteed supply of electricity at wholesale prices.
According to a survey conducted by Lawrence Berkley National Laboratory & the Consumer Electronics Association, the average homeowner was able to reduce monthly electric bills from $233.69 to $151.36. Over a 20 year span, this would equate to a savings of nearly 76%! Sounds too good to be true I know. Let’s weigh the pros and cons.
So what’s the catch?
In exchange for having access to incredibly low rates, you give up the rights to solar incentives and tax write offs that would have if you were leasing the equipment. Now you may be thinking that this isn’t fair, however, some homeowners have found this to be beneficial because the responsibilities of managing incentives can become a headache when you combine all of the other monthly bills and obligations that you are constantly juggling. Solar PPA’s may be for you if you are searching for simple way to save money that doesn’t require too much on your part.
With the cost of utilities from traditional energy companies rising 5% annually, conspiracy theories have arisen about an “energy monopoly.” While arguments can be made on both sides, it would be wise for you to take proactive steps ensure that you have access to low energy rates for years to come. In order to guard yourself and secure a guaranteed low rate, Solar PPA’s may be a great way to save money without having to shut off your lights, appliances, and other electronic devices.
What if I move?
In the case that you relocate, the contract will remain with the individual living at the home. This is because of the fact that it is not easy to uproot a home solar system and haul it away with you to your new home. What you can do in this situation is negotiate this feature as an added value when selling or renting out your old place.
The agreement is transferable meaning that you can hand over your Solar PPA to the new homeowner. If you have a Solar PPA and are considering moving, you should calculate the market value of your current agreement and allow the new buyer to purchase it from you.
How to sign up for Solar PPA
As of December 2013, Solar PPA’s are available in Arizona, California, Connecticut, Colorado, Louisiana, Maryland, Massachusetts, New Jersey, New York, and Oregon. If you live in other states, you should urge your local representatives to approve these programs in your community.
To sign up for Solar PPA, you should contact a reputable solar company in your area. Providers vary by location, so be sure to take the necessary steps to make sure that the company you choose to go with follows ethical business practices.