What is a Power Purchase Agreement (PPA)?
Since the 30% Tax Credit expired on Jan 1, 2026, many homeowners are looking into Power Purchase Agreements (PPAs) as a cost-effective way to replace PG&E and get relief from high electric bills.
A Power Purchase Agreement (PPA) is an agreement between the homeowner and a third-party company. The third party owns the system, and you just purchase the electricity the system produces at rates far below what you are paying to PG&E.
The solar company replaces PG&E and becomes your new utility company. Because solar panels are treated like utility equipment they are installed at no charge to you –just like the electric meter on the side of your house was installed by PG&E with no charge. Since your home is now powered by solar, you just pay for the electricity the system is producing rather than pay for the panels.
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