How a Solar PPA Works

What is a PPA?

A Power Purchase Agreement (PPA) is a way to go solar with little or no upfront cost. Instead of buying panels, you agree to buy the electricity those panels produce at a set ¢/kWh rate.

• A third party owns and maintains the system
• You pay only for the power it generates
• The rate and term are spelled out in the agreement
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PPA vs. staying with the utility

When you rely only on your utility:

• You pay whatever rate structure they publish (and they can change it)
• You’re exposed to potential rate hikes over time
• All of your kWh come from the grid mix (which may or may not be clean energy)

With a solar PPA:

• A portion of your energy comes at a contracted rate
• That rate is designed to be competitive with your current effective cost per kWh
• Your contract lays out how, if at all, the rate can change in the future

We’ll model:

• Your current “all-in” cost per kWh from the utility
• The proposed PPA rate, escalator (if any), and term
• Side-by-side projections so you can see possible savings and risk.
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What you still pay the utility for

Even with a PPA, you remain connected to the grid.

• Basic service / delivery charges
• Any consumption above what the solar system produces
• Credits or charges under your utility’s specific net metering or export rules
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Responsibilities and maintenance

With a PPA, the system owner:

• Monitors performance
• Handles equipment repairs covered by the agreement
• Takes on production risk as defined in the contract
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You:

• Pay your monthly PPA bill based on production
• Maintain basic homeowner responsibilities (keeping access clear, not tampering with equipment, etc.)