What is one of the primary advantages of a Power Purchase Agreement?

One of the primary advantages of a Power Purchase Agreement (PPA) is that it allows the user to engage in solar energy generation without any upfront costs. In a PPA, a third-party developer finances, installs, and maintains the solar energy system on the user's property, typically at no cost to the user. Instead, the user agrees to purchase the electricity generated by the system at a predetermined rate, which is usually lower than their current utility rates.

This arrangement provides significant financial benefits, especially for those who may not have the capital to invest in a solar system upfront. It also removes barriers to entry for adopting renewable energy technologies and allows a wider range of users—such as businesses, schools, and non-profits—to benefit from solar power.

The other options don't reflect the nature of a PPA as directly. Immediate ownership of the system relates to outright purchase models, while guaranteed maintenance is typically part of a lease or financing arrangement but not specific to a PPA. Tax benefits are usually pertinent to ownership scenarios rather than agreements where the user is purchasing the electricity rather than the system itself.