What is a PPA? 

PPA stands for “Power Purchase Agreement.” It is a financial agreement entailing the design, permit, financing and installation of your home’s residential solar panels with little to no up-front cost. You sign a 20-25 year contract from a solar services provider that, in-turn, allows you to receive the benefits of the system, i.e., the energy generated. In a nutshell, you aren’t actually purchasing the panels, you’re purchasing the system’s electric output, which is often much cheaper than paying your utility company for their power. 

Did you know that the charge for solar electrical output is generally between 14 to 17 cents per kWh? This is typically less than the average cost per kWh that you’re paying your utility company. This is especially true in states that have high electricity prices, like California. 

State based rules are also a large part of the PPA model and its ability to work effectively. The solar leasing options and PPA choices are sometimes not available and vary state to state. Selling electricity is a regulated activity. Because of this, solar systems need legislation to protect them from public utility requirements since technically, power can only be sold through electric companies. 

There are two types of PPA agreements with Sun Energy California: monthly and prepaid. 


  • Most Popular Option 
  • As low as $0 down
  • Flat Monthly Payments
  • Warranty Included
  • Maintenance Guaranteed


  • Best Value Option
  • Instant Utility Savings
  • No Monthly Payments
  • Warranty Included
  • Maintenance Guaranteed


What are the benefits of using a solar PPA? 

There are many benefits when you agree to have solar panels installed on your property in order to purchase the generated power. For example, it allows the customer to avoid high upfront costs and having to worry about the system performance and permitting process. 


  • Can save you money starting on day one
  • No upfront cost
  • Predictability
  • No worry about system performance or operating risk
  • Possible increase in property value 
  • Reduction in carbon footprint

What are my solar financing options? 

Unfortunately, due to the fact that many solar loans (not PPA) now offer zero down payment as well, the PPA process has become even more confusing. That’s why Sun Energy takes the time to explain your financing options so you can make the best decision for you and your family. That being said, there are 4 different payment options (typically across the board) when deciding to go solar:


  1. Monthly PPA – Flat Monthly Payments 
  2. Prepaid PPA – One Upfront Payment For All Your Power
  3. Financed Loan – Fixed Monthly Payments, Tax Credits
  4. Cash Purchase – Purchase to Completely Own Your System – No Monthly Payments, Tax Credits 


Have more questions or interested in going solar? We are happy to talk to you more in depth about your options. Reach out to one of our solar advisors at 760-545.8466. No pressure. Free estimates and consultations. You’ve heard the bad. We’ve got the truth! 

Did you know?

One wind turbine can produce enough electricity to power up to 300 homes.

Renewable energy is a form of clean energy that is provided by natural sources present in nature.

Solar, wind, hydroelectric, biomass, and geothermal power can provide energy without the planet-warming effects of fossil fuels.

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