A power purchase agreement (PPA) is a contract between the solar system owner (investor) and the home owner (off-taker). A PPA allows a home owner to host a solar power system on their roof without any upfront costs. Instead, the home owner purchases the electricity from the system owner at a pre-determined rate. The PPA tariff is below the utility rate and can be fixed for a 10 to 20 years term. While the home owner puts $0 down, the PPA provider owns the system and is responsible for the warranty and maintenance.
If you choose a solar operating lease, the solar lease provider owns the solar system, receives all of the federal tax credits and accelerated appreciation, while you receive the SMART incentives and the solar electricity.
You have a fixed monthly lease payment with a buyout option in year 7 at 15% of the system value. With this lease option you receive benefits of a reduced utility bill, and will own the system, if you decide to purchase it at the 7th year.
To eliminate upfront costs, Brightway Energy offers 100% financing with simple loans. This allows you to own your solar system, take advantage of all incentives including the tax credits, and generate a profit in the first year. Your electricity bill savings and incentives exceed your monthly loan repayments, giving you positive cash flow from the onset.
Purchasing your solar system directly provides you the highest return on your investment. All Federal and State incentives remain with you avoid interest payments or finance fees. With an outright purchase of your solar system, more than 50% is recovered through incentives in the first year and your annualized return on investment (ROI) exceeds 10%.
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