Assuming a solar PPA...
Hi! Does anyone have any advice on what to look for when assuming a solar PPA on a house we're looking to buy in DC? I keep seeing it's a bad idea...and we have the option to opt out of the contract and Solar Solutions will remove the panels...but it doesn't seem terrible (0% escalator, and if we sell the house the next buyers can opt out and have them removed as well).
Contract terms:
Power Purchase Agreement (PPA).
A. The energy produced by the System will be purchased and used by Host at a fixed price of $0.069 per kWh for a period of fifteen (15) years (“Contract Term”). This price will increase by 0% per year.
B. Initial payment of $1.00 is due at the signing of the contract referred to as an application fee.
C. Upon completion of the Contract Work, Host agrees to pay Provider for the power produced by the System for the duration of
the Contract Term. Provider will bill Host monthly via automatic debits (ACH) based on final system size and production in kWh.
D. At the end of each year, Host and Provider will verify total production for the year. If the System has not produced as much power as estimated for the previous year, the Provider will provide a credit on the next payment for the following year. If the system produces more power than estimated, the extra amount is forgiven.
E. At the end of the Contract Term, the Provider will transfer ownership of the System to Host for One Dollar.
F. Host will not own any rights to Solar Renewable Energy Credits for this project at this site for the 25 years. Ownership of these SRECs are freely assignable by the Provider.
Or is there another part of the contract I should be looking at closer?
Thank you!