Thinking about going Solar? PPA versus Buying

Are you thinking about going solar and want to find out more? There are lots of companies out there promoting solar and want your business. How can you filter through the muck, salesmen hype and figure out what works best for you?

Here is a breakdown of the 2 main options for installing solar on your home or business along with the advantages and disadvantages of each option.

PPA's Purchase Power Agreements
What is a purchase power agreement? How does it work and who benefits from this type of installation?

A "PPA" is a means, to get solar installed on you home or business with little or no investment for you. You agree to purchase the power coming from the solar system for a determined length of time. Typically 18-20 years.
       YOU DO NOT OWN the solar system but you get to reap SOME of the benefits of going solar. You still purchase the power coming from the solar panels but pay less than you would from your utility.
       Many companies are promoting that you will save up to $600 a year with this option (best case scenario). Let's take a look at how this plays out over time.

Savings; $600 x 20 years= $12,000 not to bad

Be aware that your energy costs will still continue rise as utilities raise there costs. You will continued to pay a reduced rate but your savings will never be more than $600 annually.

Advantages

Little or no upfront costs
Savings on your energy bills
No maintenance

Disadvantages

You do not own the system and do not get the tax credits
You do not get to receive the SREC income generated from your system
Minimal cost savings on your energy bills
Energy costs from the solar system will still continue to rise



Buying you solar system

Buying your solar system typically requires some kind of investment from you. At minimum a loan to pay for the system and installation. This may seem a little daunting to but lets take a look at the payoff in the long run. The cost estimate to build a system that would save you $600 on a PPA would cost around $45,000. Sounds like a lot but let's look at the numbers.

cost of system                $45,000
Federal tax credit          -$13,500     You get this when you purchase the system
after fed tax credit      =  $31,500

                                        $31,500
State tax credit (MA)     - $1,000     You get this when you purchase the system
                                       = $30,500

                                       $30,500
SREC income               -$27,500  Cash from selling the SREC's for the first 10 years of production
                                        $3,000

                              $3,000
20 year savings   -$45,000
                           =$42,000   This is YOUR savings from purchasing a solar system.

You still own the system and it should continue to generate energy for years to come.
Did I mention that the solar system will add value to your home, If you own it. Approximately 90% of the post tax credit value is added to your home. ($27,000)

 Advantages

Big savings on your energy costs
cost of energy from the system will not rise
You get the tax credit
You get the SREC income
Added value to your home
Property Tax exemption

Disadvantages

Up front costs
Maintenance


Synergy Home Energy Solutions does not offer PPA's for our customers.
We sell and install systems throughout southeastern Massachusetts and Cape Cod

Personalized professional care from start to finish.

Contact us today for a free over the phone solar analysis   508-524-4038




Solar systems are exempt from property tax increase.



*20 year energy savings, calculated at 12,000 KwHr's annual production with no increase in energy costs (current MA energy rate $.20 KwHr)