Solar PPAs are structured to last typically 20 or more years, with a minimum of 6 years.
But, all good things must eventually end - and so at some point the PPA will terminate.
In the first 6 years:
- if they are terminated, there are complex federal tax recapture issues -
which are costly both to the investors and the building owner.
From the 6 year mark - to the end of the PPA term (typically 20 years):
- The building owner may choose to buy the solar system and terminate the PPA at any time.
- The purchase price will be discounted from the initial system cost and decreases over time.
- The building owner then gets "free" electricity from the panels, but must do their own maintenance.
At the end of the PPA term, the building owner has several options:
- you can leave the system in place, and renew the PPA at new (lower) rates
- you can buy the system (which will still have 5+ years of productive life)
at a heavily discounted rate and get "free" electricity
- you can remove the system and go back to paying for your electricity from the public utility
- you can replace the systems with newer technology
"It's American to disagree.
It's also American to come together in the face of a challenge.
And few challenges are as urgent as global climate change. Take one minute to join us
at wecansolveit.org and add your voice to millions of others. Together we can solve the
climate crisis."
- Speaker Nancy Pelosi (D) and Speaker Newt Gingrich (R),
The Alliance for Climate Protection
