Solar PPA or outright purchase… Which is better?
At time the consumers are not in a position to decide if the outright purchase is better option or to sign a power purchase agreement with the solar developers. Though it is a individual decision based on the circumstances.
While owning solar panels will yield you benefits for over 25 years of lifetime of solar assets and the payback period is typically four/five years. The outright purchases are better to the consumers who wish to avail the accelerated depreciation tax benefits. This tax benefits your pay back period to about three years.
In case of solar PPA you have Zero down payment and you get your electricity bill savings from the date of electricity purchase from the solar assets. The typical reduction in your electricity bills can be expected are of the order of 30-50%.
In case of a solar PPA you do not have any maintenance liability and it is done by the solar developers.
If you can take advantage of accelerated depreciation tax benefits, you can opt for ownership option of solar asset and reap benefits of green electricity for 25 years. If you do not want to get in the system operation and maintenance, then go ahead for signing a solar power purchase agreement with the solar developers.
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