PPA and energy community: alternatives to owning your panels

Three ways to have solar without installing on your roof: PPA at your home, community solar in your area, virtual park subscription. Each with pros and cons.

PPA: Power Purchase Agreement

Company installs panels on YOUR roof at their cost. You buy the produced electricity at fixed price (typical $0.10-0.15/kWh, 50% of grid) for 15-25 years. At end of contract, panels are yours.

Local energy community

Neighbors in same municipality (2 km radius in Spain) collectively finance a solar install on common roof (school, gym). Each participant gets bill credit proportional to contribution.

Solar park subscription

You 'subscribe' to a virtual portion of a solar park 30-120 mi away. Your bill gets monthly credit for energy that portion produces. Useful for renters or apartments without balcony. Available: 22 US states, growing in EU.

Cost-benefit comparison

Upfront: PPA $0, Community $1700-3500/neighbor, Subscription $0. Bill savings: PPA 30-40%, Community 50-70%, Subscription 10-30%. Lock-in: PPA 15-25 years, Community 10-20 years, Subscription 1-5 years.

Risks to consider

PPA: selling home, buyer inherits contract (may reduce sale price). Community: moving out of municipality, you lose investment. Subscription: if company goes bankrupt, you lose credit balance (no guarantee).

When to choose each

PPA: own home with roof but no cash. Community: apartment without balcony but want to 'own' and live in active municipality. Subscription: rental or small condo, max flexibility, $0 upfront.

When NOT

Selling home in <5 years: no PPA. Your area has no active community: skip. Want maximum long-term ROI: buying and installing always wins.

Compare with panels in HOA apartment.