PPAs

What is a PPA?

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PPA Overview:
Under a PPA, a solar provider like Freedom Forever installs a solar panel system on your home at no upfront cost. Instead of paying for the system, you agree to buy the electricity generated by the solar panels at a fixed rate for a specified term (often 20-25 years).

 

Key Features of a Freedom Forever PPA:

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1. No Upfront Costs:
   - Freedom Forever covers the cost of the solar system's installation, including equipment and labor. Homeowners do not need to pay anything upfront.

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2. Fixed Electricity Rate:
   - You pay a fixed rate for the electricity generated by the solar panels, typically lower than your utility’s rate. This rate is locked in for the duration of the contract, which can protect you from future utility rate increases.

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3. Long-Term Contract:
   - The typical contract length for a PPA with Freedom Forever is 20-25 years. This is a long-term commitment, so it's important to understand the terms thoroughly.

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4. Maintenance and Monitoring:
   - Freedom Forever is responsible for maintaining and monitoring the system throughout the contract period. This includes repairs, servicing, and ensuring the system is functioning correctly.

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5. Performance Guarantee:
   - Freedom Forever often provides a performance guarantee, ensuring that the system will produce a certain amount of electricity. If the system underperforms, they may compensate you for the difference.

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6. Escalator Clause:
   - Some PPAs may include an escalator clause, which increases the rate you pay for electricity each year by a fixed percentage (typically 2-3%). It’s crucial to understand how this will affect your savings over time.

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Advantages of a PPA with Freedom Forever:

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1. Cost Savings:
   - You can save money on your electricity bills from day one, with no need to invest in the solar system upfront.

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2. Hedge Against Utility Rates:
   - The fixed rate provided by the PPA can protect you from future increases in utility rates, offering financial predictability.

 

3. No Maintenance Hassles:
   - Since Freedom Forever is responsible for maintaining the system, you don’t have to worry about repair costs or technical issues.

 

4. Environmental Impact:
   - Going solar reduces your carbon footprint, contributing to a cleaner environment.

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Considerations and Potential Drawbacks:

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1. Buyout Options:
   - Some PPAs offer an option to buy out the system after a certain number of years. If you’re considering this, make sure you understand the buyout terms and whether it’s financially beneficial.

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2. Transferability:
   - If you sell your home, the PPA typically transfers to the new homeowner, but the new owner must qualify and agree to the terms. Ensure you understand how this process works before entering the agreement.