You should have the right to purchase energy from anyone you want.
Third party ownership provides a way to do exactly that.
Increased competition and strengthened markets. Third party ownership is good policy.
What is Third Party Ownership?
Third-party ownership of renewable energy through power purchase agreements (PPAs) or solar leases allows homeowners and businesses to buy power from a source other than their current electric provider. It does not eliminate your current provider or preclude you from signing similar agreements with them, if you so choose.
Third-party ownership is an established financing solution in the United States and is one of the most popular methods of solar financing for consumers to benefit from solar energy. Third-party ownership of solar energy primarily occurs through two models. You can:
- Sign a traditional lease and pay for the use of a solar system. Leases typically range from 10 to 25 years.
- Sign a PPA to pay a specific rate for the electricity that is generated each month. PPAs usually eliminate most or all of the system’s up-front costs.
Third party ownership is attractive to the market and customers like you for a variety of reasons.
- Can reduce or eliminate upfront costs much how you finance a home or a cell phone.
- Allows tax-exempt organizations like churches, non-profits, and governmental entities to access tax benefits because a taxable corporation owns the asset.
- Limits risk because a third-party expert can be responsible for operations, maintenance, and system performance.