Key Benefits of A Solar PPA: Understanding Financing Options
How Much Can You Save
with a Solar Lease or Solar PPA?
So, How Does A Solar PPA Work?Â
Green Power Energy offers flexible solar power purchase agreements (PPAs) to help you invest in renewable energy without stretching your budget.
A PPA lets you pay for the clean energy your system generates without buying the equipment outright. In the past, PPAs charged based on your system’s month-to-month production, creating fluctuations in your bill.
Modern PPAs work differently. Today’s third-party ownership (TPO) products use a fixed monthly payment that’s calculated using a simple formula: your agreed-upon kWh rate × the system’s annual estimated production ÷ 12. This gives you predictable costs every month, even though your system will naturally produce more in some seasons and less in others.
You can think of it like a solar subscription: your solar lender owns and maintains the system, and you simply pay a consistent monthly fee for the power it produces.
Key Benefits
- A Power Purchase Agreement is an agreement to purchase the power generated by the solar panels at a fixed, lower rate than what would otherwise be paid to the utility company.Â
- Includes 25-year warranties and maintenance.
- Costs $0 out-of-pocket.
- Saves money immediately and hedges against future rate increases.
- Most popular way to go solar nationwide.
Calculate Your System
Size & Savings
An Example of Your
PPA Savings Breakdown
No Solar
$320/month
Increasing
0% PPA
$243/month
Locked-In
2.99% PPA
$182/month
Starting Payment
We have estimated monthly payments, system production, and lifetime savings for illustrative purposes; these estimates are not a guarantee. The actual system production and savings will reflect the final system size, design, configuration, and utility rates. 29 Panels (avg/home) 12,170 kWh/year production
How Do Annual Escalators Work & How Will My Payment Change Over Time?
Solar PPAs can include an annual price escalator, typically of 1% to 3%, which adjusts your payment slightly from each year to account for inflation and increases in utility rates. Some plans offer a 0% escalator, so your monthly payment remains the same for the entire term.
When you choose a plan with an escalator, your first-year payment is usually lower, and your rate increases gradually over time. With a flat (0%) escalator, you’ll pay a bit more each month upfront, but your cost stays predictable for the long run.
Our solar consultants will walk you through how each option affects your return on investment, so you can choose the plan that best fits your goals and budget.
Why Choose A Solar PPA Now?
- 30% Tax Credit is Expiring – meaning cash buyers are about to flood the market – a PPA protects you before prices spike.
- Utility Rates are Climbing Nationwide – A PPA allows you to lock in predictable power prices.
- Start Saving Immediately: Every month you wait, you’re overpaying for your utilities.
- Equipment and Labor Costs are Rising: Signing a PPA now freezes your rate before they increase
Alternatives to Solar PPAs with Green Power Energy
Want to own your solar panels without paying up front? Green Power Energy offers flexible solar loans, allowing you to make monthly payments similar to those of a PPA while owning your system from day one.Â
Your first payment isn’t due until after your system is activated, and you won’t pay out of pocket for installation. This option combines the affordability of a PPA with the long-term financial benefits of ownership.
The Questions We
Get Asked The Most
Does a solar PPA save money over time?
Yes, a solar PPA can save you money over time, especially when the kWh rate is lower than what you currently pay your utility. Your monthly cost is based on the system’s estimated production, so you may see even greater savings in years when your system generates more energy than projected.
What happens at the end of a solar PPA term?
You can choose to renew your agreement, buy your system at fair market value, or have it removed at no cost. Many homeowners opt to purchase the system to keep enjoying free electricity.
Can I sell my home if I have a solar PPA?
Yes. You can either transfer the agreement to the new homeowner or buy out the system before selling; Green Power Energy helps streamline both options.
Is a credit check required for a PPA?
Yes, a basic credit check is typically required to qualify for solar financing.
What happens if my system underperforms?
Green Power Energy guarantees system performance for the full PPA term. If your panels produce less energy than expected, we’ll cover the difference or resolve the issue at no cost to you.
Schedule A Free Consultation for Your Roof Replacement with Solar Panels!
Looking to invest in solar energy with a PPA? Green Power Energy makes going solar simple and affordable with flexible financing options that fit your budget.
Get your free estimate today and see how much you can save by switching to clean, reliable solar power.
Get An Estimate
about
residential
resources
information articles
@ 2025 GREEN POWER ENERGY
(844) 584-0008
(844) 584-0008
NJ HIC #13VH05559800
NJ ELC #34EB01151200
PA HIC #PA128259
CT HIC #0656622
CT ELC.0205319-E1
TECL #37773
Get an instant solar estimate using satellites!