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Updated almost 2 years ago on . Most recent reply

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28
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Brian V.
  • Homeowner
  • Victorville, CA
13
Votes |
28
Posts

In Southern California is it worth it to agree to a solar power purchase agreement?

Brian V.
  • Homeowner
  • Victorville, CA
Posted

My electric company, Southern California Edison, is changing its net metering rules to become very unfavorable to new solar customers. If I get solar before April 14th, I'm grandfathered into the current rules (NEM 2.0) for 20 years, and it is much more favorable to me.

I'm looking at a 6.4 kW/10,000+ annual kWh system under a power purchase agreement (PPA) for $155 per month with no escalator. It is cheaper than ownership because I do not qualify for the 30% federal tax credit.

My question is, if I want to sell my house (I live in Victorville, CA), will the PPA contract grandfathered in at NEM 2.0  be a problem to pass on to the buyer, or will I lose a lot of money paying off the PPA?

I realize we might be entering some difficult times in Real Estate, and that some home improvements don't pay for themselves when you sell.  I've read that PPAs are a hard pill to swallow, but this PPA has no escalator and will be grandfathered into more favorable net metering rules.

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Replied

If you have any clients looking into it have them reach out to me and I'd be happy to walk them through it. 

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