PACE Addendum To Solar Power Purchase Agreement 2025

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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 site the system on its property and purchases the systems electric output from the solar services provider for a predetermined
Con: Lack of Ownership With a PPA, property owners dont actually own the solar panels installed on their property. Instead, the solar provider owns them. And because property owners dont own the solar panels, they arent eligible for many discounts, such as tax credits.
Many solar companies will not allow you to simply end your contract before the term ends, even if you are selling your home. If you want to sell your home before your PPA contract expires, youll need to transfer your PPA to the new homebuyer, buy out the system, or terminate your contract and have the panels removed.
Theoretically there is no issue selling a house with a PPA. But in practice you will not be able to explain the value of the PPA to the new buyer, but they will understand and be fearful of the cost. Basically same issue with buying your own panels and having them installed.
The Solar Lease Addendum is part of your Lease Agreement and governs your participation in your communitys solar program. In addition, it legally allows your property owner to manage your electric utility account on your behalf to provide you with an accurate, consumer-friendly solar billing experience.
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