We understand the allure of solar energy to shrink or completely stop your electric bill. And living in Southern California, you've likely considered solar panels for your home at one point in time. But the upfront cost can be a hurdle. Here's where Solar Power Purchase Agreements (SPPA) and leasing come in – so you can enjoy the benefits of solar without the hefty down payment. But is it right for you?

How a Solar PPA Works

Under a solar lease, your solar PPA contract will employ a solar installer like August Roofing & Solar that is responsible for the installation of the solar panels on your roof. After the installation process, you’ll only need to purchase the electricity they generate at a discounted rate that is set for every kilowatt-hour (kWh). It's like paying your electric bill, but now at a lower rate than what you pay to a big electric company like Southern California Edison!

Because you’re signing a lease, you don't own the solar panels. They remain the property of the solar company. However, you do own the electricity the panels produce for the term of your PPA lease contract, usually 10-25 years.


​​Pros and Cons of a Solar PPA


No Huge Upfront Cost: This is the biggest advantage. You get solar savings without a big investment.

Predictable Average Pricing: With a solar power purchase agreement, you know the exact rate you’ll be paying for your energy use during the entire lease contract term. Your contract will lay out every number you need to know.

Discounted Rates: The rate you’re paying for your solar electricity is much less than the rate for utilities from Edison. Even though your energy use might look different every single month, you can be sure it’s less than your current utility bill.

Zero Responsibility: The solar company holds responsibility for all future maintenance and repairs, ensuring your system runs smoothly.


Common Concerns

​No Solar Tax Credits: Because you don’t own the system, you won't personally qualify for the federal solar tax credit with a solar lease. But fear not! Your electrical provider passes down the solar credit discounts it receives to your final fixed rate, keeping your bill more affordable than going with big energy providers like Southern California Edison.

Selling Your Home: A SPPA can SEEM like selling your home could be more complex. But it actually is a benefit to the buyer allowing them savings on their own electricity bill per month once they buy the house! All that will occur is a smooth process that will allow the buyer of your home to assume the lease contract if your term hasn’t ended!

The Solar PPA Contract


Before signing a solar PPA, be sure to read the fine print. Understand the length of the lease, termination clauses, any fees you might be responsible for, and most importantly, the fixed rate per kWh you'll be paying. Be sure the fixed rate you agree to is a good value. While it should be lower than the market’s utility rates, take into account the pre-agreed rate increases (which will be stated in the contract). At August Roofing you don't have to go through this process alone, we’re here to help you understand all details of your lease and answer any questions you may have.

Consider if the energy your system is producing will cover ALL of your energy needs day and night. If it does not, you will be paying a utility bill for whatever is needed after all of your solar energy is used up. Usually, this has been seen only to occur at night when your solar panels stop actively producing and you’re burning through the most energy. In this case, talk to your solar provider about a solar battery option! Learn more about how solar batteries can completely replace your electric bill here.


​​Who is a Solar PPA Right For?

Solar PPAs are ideal for homeowners who:

  • ​Want solar savings without the upfront cost
  • Prefer more predictable electricity costs
  • Are comfortable with a long-term contract

Should You Get a Solar PPA?

For many Los Angeles, Ventura, and Santa Barbara County homeowners, solar PPAs offer another affordable option to save money on electricity without a large upfront investment. However, it's not a one-size-fits-all solution.

At August Roofing & Solar, our team of experts can help you determine if a solar lease is the right choice for you. We'll explain all your options, answer your questions, and ensure you get the best possible deal for your home. Contact us today for a no-cost-to-you consultation at the form below!