As Maryland homeowners notice their rising electric rates, the need for a more affordable and stable energy solution has never been more apparent. Energy Select is proud to provide that solution by launching our residential Power Purchase Agreement (PPA) program, an initiative designed to remove the single biggest barrier to adopting solar energy: the high upfront cost.

This program empowers homeowners across Maryland to switch to clean, renewable solar power for zero dollars down. It’s a direct path to immediate savings, long-term financial predictability, and a more sustainable future, all without the multi-thousand-dollar investment of purchasing a system.

Power Purchase Agreement: A Simple Model for Solar

A PPA simplifies your transition to solar through a transparent, service-based model. Instead of buying a solar system, you are subscribing to the clean energy it produces at a rate significantly lower than you currently pay your utility.

Here’s the process:

System Ownership and Installation: The PPA company covers the entire cost of the solar system. They own, manage, and are fully responsible for the hardware. Our local, certified technicians then design and install a custom system on your home, handling all permits and paperwork.
Pay for Power, Not Panels: Once your system is activated, you simply pay a low, fixed rate for every kilowatt-hour (kWh) of electricity the panels produce. You are not paying for the equipment, the installation, or the maintenance—only for the clean energy you use.
Instant and Growing Savings: Your PPA rate is set to be lower than your utility’s rate from day one. This means your new, combined energy cost (the PPA payment plus a much smaller utility bill) will be less than your old bill immediately.

The Economics of a PPA: Predictability in an Unpredictable Market

The financial benefit of a PPA is achieving stability in a volatile market. The Energy Select PPA acts as a shield, protecting your budget from unpredictable utility rate hikes driven by fuel costs, inflation, and grid infrastructure projects.

Let’s examine the economics with an example:

Current Situation: Subject to Utility Hikes
- Average Monthly Electric Bill: $350
- Annual Cost: $4,200
- This cost is expected to rise based on historical utility rate increases.
Future with a PPA
- Fixed Monthly PPA Payment: $250
- New Reduced Monthly Utility Bill: $10
- Total Predictable Monthly Cost: $260
- New Annual Cost: $3,120

This homeowner saves $1,080 in the first year alone. Given that utility rates in Maryland have been increasing by over 4% each year, this guarantees your savings margin actually widens over the life of the agreement as utility prices continue their upward climb.

Keys Benefits for Power Purchase Agreements

Zero Upfront Investment: Go solar with no out-of-pocket costs for equipment, design, permitting, or installation.
Bumper-to-Bumper System Warranty: The PPA provider is responsible for all maintenance, repairs, and insurance for the entire term. Proactive 24/7 monitoring ensures your system is always running at peak performance.
Performance Guarantee: Your system is guaranteed to produce a specified amount of electricity. If it ever falls short, you are paid the difference.
Not a Loan, Not a Lien: A PPA is a service agreement that does not impact your credit score or debt-to-income ratio, leaving your borrowing power intact for mortgages or other loans.

Frequently Asked Questions

What happens if my system is damaged by a storm?
- You are fully covered. The system is insured and maintained by the PPA provider. Your only responsibility is to notify them. They will manage all repairs and associated costs to get your system back online promptly.
What happens if I decide to sell my home?
- Our PPA includes a dedicated service team to make the process seamless. You have three options:
  - Transfer the Agreement: The PPA and its savings can be easily transferred to the new homebuyer, making your home more desirable on the market.
  - Purchase the System: You can buy the system at its fair market value and include it as a valuable asset in your home’s sale price.
  - Prepay the Agreement: You can prepay the remaining payments, offering the new owner a home with a “free” solar energy system for the remainder of the term.
What happens when the PPA term ends?
- At the end of your term (typically 25 years), the choice is yours: renew the agreement at a new, lower rate; purchase the system outright; or have the system professionally removed at no cost, with your roof restored to its original condition.

Interested in learning more? Let our team provide you with a straightforward, transparent proposal that shows you exactly how much you stand to save each month.

Reach out to Energy Select today to see if a PPA is right for your home.