Why a Traditional PPA Might Cost You More Than You Think

If you’ve been offered a traditional Power Purchase Agreement (PPA), take a moment to review this page before signing.

You’re Paying for Power, Not Ownership

A Power Purchase Agreement (PPA) locks you into a long-term contract—typically 25 years—where you’re essentially renting power instead of owning it. While it might seem like a hassle-free solution at first, you miss out on the long-term financial benefit and lose the flexibility of ownership.

Your Rate Increases Every Year

Most PPAs include annual escalators of 3.9%, meaning your electricity costs will continue to rise indefinitely. What seems like a good deal today could become a financial burden in the future as your rates climb far beyond what you originally envisioned.

Locked in for 25 Years—No Flexibility

With a PPA, the solar company owns your system, meaning you can’t upgrade, modify, or optimize it to fit your evolving energy needs. Energy rates and home energy usage change over time, but with a PPA, you’re stuck with what you signed up for—even if it no longer makes sense for you. Most of our clients modify or make changes to their systems as life changes.

A PPA Can Hurt Your Home’s Value

Unlike an owned solar system, a PPA can make selling your home more difficult. Buyers often hesitate to take over a long-term solar contract that doesn’t make any sense, and any remaining balance on the agreement reduces your home’s marketability and resale value. Instead of increasing your home’s worth, a PPA could become a financial obstacle.

Use our calculator to see what a Traditional PPA will actually cost you before you agree to anything.

What’s the Better Alternative?

Unlike a traditional Power Purchase Agreement (PPA), owning your solar system puts you in control of your energy costs. Instead of endless rate increases, you can lock in your savings and even increase your home’s value with a system that you own.

Why Ownership Makes More Sense

✅ No Annual Rate Increases – Your payment stays fixed while others see their costs rise.
✅ Lower Monthly Payments – Financed solar payments are often lower than a PPA, locked in with no escalators, and paid off in a much shorter timeframe.
✅ Higher Home Value – A fully owned system can boost your home’s resale price (even if its financed).
✅ More Flexibility – Upgrade, expand, or optimize your system whenever you need. Life changes; EV, Pool, ADU, More AC Etc. The system you built 15 years ago will probably need to be scaled up. You can’t do that with a PPA.
✅ Better ROI – Take advantage of tax credits and rebates for even greater savings. If you don’t want to wait for your tax credit or don’t qualify ask us about about Monetizing your Tax Credit for you.

---

Want a Smarter Solar Solution? Let’s Talk.

Our experts can help you find the best solar financing options—without locking you into a bad (predatory) deal.

📞 Call us at 619-500-8255
📩 Get a Free Consultation