If you’re considering going solar, you’ve likely encountered the term power purchase agreement (PPA). A PPA gives homeowners and businesses the benefits of solar energy without the upfront costs of purchasing a system. But what exactly does a PPA involve, and does the time of year matter when you sign one?
What Is a Solar Power Purchase Agreement?
A solar PPA is a contract between you and a solar provider. The provider installs, owns, and maintains the solar panels on your property. In return, you agree to buy the electricity those panels produce at a fixed rate. This rate is usually lower than your current utility rate. This means you can start saving on your energy bills right away, without worrying about maintenance or repairs. PPAs typically last 15 to 25 years, and your rate may increase slightly each year based on a predetermined schedule.
Does the Time of Year Affect a PPA?
While solar production certainly varies by season—longer, sunnier days in summer generate more power—the timing of your PPA agreement generally doesn’t change the contract terms. Your provider determines your rate per kilowatt-hour and other financial details, not the season. However, the time of year can affect installation timelines and incentive availability.
For instance, solar companies are often busiest toward the end of the year, when homeowners rush to qualify for tax incentives before the end of the year. While this can make scheduling more challenging, it’s also an excellent opportunity to lock in rates if incentives or rebates are set to expire.
End of Year vs. New Year: Which Is Better?
If your provider’s pricing or local incentives are expected to change in the new year, signing a PPA before December 31 can secure this year’s terms and help you benefit sooner from lower energy bills. On the other hand, if new incentives or technology updates are expected after January 1, waiting until the new year could be advantageous.
Understand Your Solar Power Purchase Agreement with Sunday Energy
Ultimately, the best time to sign a PPA depends on your local incentives, energy rates, and installation schedule—not the calendar alone. Our team at Sunday Energy will help you evaluate your options and decide whether now or next year is the right time to make the switch.