Virginia Solar Installation Agreement
Description
How to fill out Solar Installation Agreement?
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FAQ
A qualified, licensed solar installation company will make sure that your system qualifies for this benefit. But going DIY could disqualify you from the federal tax credit.
Nationwide, Virginia ranked fifth with 236 megawatts of new solar capacity installed in the first quarter of this year, according to a report released Tuesday by the Solar Energy Industries Association and Wood Mackenzie. That's more than the state added annually in 2018, 2019 and any year before 2017.
A Power Purchase Agreement (PPA) is an arrangement in which a third-party developer installs, owns, and operates an energy system on a customer's property. The customer then purchases the system's electric output for a predetermined period.
Despite Virginia being a solar-friendly state, there are no local incentives available to homeowners beyond property tax exemptions. The only other incentive accessible in VA is the federal solar tax credit, which we'll discuss below.
Solar panel installation makes a lot of sense for homeowners in Northern Virginia. Solar energy is more affordable than ever, and prices continue to drop year by year. As a general rule, homeowners in Loudoun, Fairfax, and Prince William Counties can expect a solar installation to pay for itself within six to 10 years.
A solar power purchase agreement (PPA) is a financial agreement where a developer arranges for the design, permitting, financing and installation of a solar energy system on a customer's property at little to no cost.
A PPA is a great option for households who cannot afford to buy solar panels outright. However for those homeowners who do have the spare cash required to purchase solar panels outright, the return on investment will be much greater by buying instead of leasing or entering a Power Purchase Agreement.
Depending on the contract agreement, when selling your house you have a few options for fulfilling the lease obligation before the lease is up:Buyout of a solar lease agreement.Purchase of the solar system at market-value.Transfer of a solar lease.Relocate a solar panels system from one house to another.
Virginia's solar rights law means that bylaws cannot prevent homeowners from installing solar panels on their property. The only way a homeowners' association that does not have a rule against solar panel installation in its recorded declaration could create such a rule would be to change the recorded declaration.
The difference between a solar lease and solar PPA is simple: With a lease, you pay a fixed monthly rent in return for use of the system. With a PPA you pay a fixed price per kWh for power generated.