Tag Archives: Solar Power Purchase Agreement

How do solar leasing companies make money?

How can companies like SunRun, Sungevity, and SolarCity provide a zero down or $1000 down solar lease while charging less per month than a utility company? Here’s a high level overview of how solar leasing companies make money. The first step is project finance. Because there is a 30% federal tax credit for residential solar electricity projects, the leasing companies, […]

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Understanding Solar Power Purchase Agreements (SPPA’s)

So what, exactly, is a Solar Power Purchase Agreement (SPPA) and how is it different from a “typical” solar installation? According to the Environmental Protection Agency, “A Solar Power Purchase Agreement (SPPA) is a financial arrangement in which a third-party developer owns, operates, and maintains the photovoltaic (PV) system, and a host customer agrees to […]

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