Answer
Aug 11, 2020 - 01:12 PM
A customer owned system is a solar installation that the homeowner purchases and wholly owns. The homeowner receives all available federal and state tax credits and incentive payments to reduce the overall cost of ownership. The homeowner also benefits by using all the electricity produced by the solar system to significantly reduce or possibly eliminate their electric utility bill. The customer owned system provider is responsible for maintenance and repairs for the term of their warranty (typically 5 to 10 years). Studies clearly show that customer owned systems provide much higher financial benefits than a PPA system. There are many options for solar loans in Massachusetts including the Mass Solar Loan program so that is it not necessary for you to have to have extra funds saved to invest in a system.
A Power Purchase Agreement (PPA) allows a solar customer to enter into an agreement whereby a solar system is installed on the roof at zero cost in exchange for reduced electricity costs (usually around 10-20%) for the period of the agreement (usually 20 years). Some people call this “leasing” their roof in exchange for a discount on their electricity. The system is owned by the PPA solar company, and all electricity produced by the system is sold to the solar customer at a contract price.
The remaining electricity that is not produced by the PPA system is billed to the customer by the electric utility at normal rates. The PPA solar company is the system owner and receives all tax credits and state incentive payments, which allows them to offer the system at no upfront cost. The PPA solar company is also responsible for maintenance and repairs, as their revenue model depends on the system providing good service. Things can be more complicated if you have a PPA and want to sell your home. In most cases, a new owner may want to assume the agreement you had, however, sometimes this will not be the case.
