What exactly is a solar power purchase agreement?

A solar PPA allows the financier to put solar on your roof that you purchase from them at a lower, predictable cost. 

To start, Lumio agrees to design, permit, install and complete the entire solar energy system on your home. You simply agree to buy power generated by the system sitting on your roof at a predictable rate.

Typically, the agreement lasts between 10 and 25 years. During the entire agreement, your financier is responsible for the operation and maintenance of the system. All you really need to do is pay less for the electricity you consume. That’s it. You could even start saving money as soon as the system is installed and switched on.

At the end of the agreement, you can choose to either extend the agreement to continue to save on your monthly utility bill, have the system removed from your home, or buy the system outright and own it and all the energy it produces until the sun stops shining.
 
Think of it like this: others are financing, installing, and maintaining a mini power company right on your roof, and you agree to buy the power you use from that system at a predictable rate. That's really it.

Can a solar PPA really save you money?

Yes! We won’t set you up for a PPA unless we know it’s going to save you money. 

Lumio will design a top-of-the-line system that will generate electricity to reduce charges from your electricity company. You would be responsible for your solar PPA bill and charges from your utility bill for any fees or extra power you need to pull from the grid—at nights, during cloudy days, or when you're consuming more than you're producing.

With a PPA, your financier pays Lumio to install your solar power system. When you buy the system yourself, you’re paying for the design, the permitting, the installation, and if you finance the system with debt, you pay interest. With a PPA, most of the time you don’t pay for anything upfront.

A solar PPA provides you with a monthly rate that’s LOWER than what you’re already paying for electricity. We do all the math up front. You’ll know exactly how much you’ll be saving every month before your system is even installed! Your financier won’t approve you if you won’t save money, so a PPA is a sure way to guarantee savings.

Lumio will analyze your energy usage to design a system as best we can that should produce power to cover your energy needs. Your solar cost will be predictable month to month and the only fluctuating costs will be from your power provider.

Since you don’t own the system on your roof, you aren’t required to keep it maintained. You transfer that time, money, and stress to the financier to take care of. Clean energy for your home with no effort on your part. It’s a win-win!

Since PPAs can be easily transferred in the event of a sale of your home, you’ll be able to transfer the energy savings, too! A solar PPA makes a great additional benefit to a potential buyer of your property.

Should I Get A PPA or Buy My Solar Power System Myself?

Since you don’t own the system on your roof, you aren’t required to keep it maintained. You transfer that time, money, and stress to the financier to take care of. Clean energy for your home with no effort on your part. It’s a win-win!

If you like what you’re reading, we’d love to give you an idea of how much you could save on your utility bill by switching to solar with Lumio. Click the link below to get in touch with one of our solar experts.