PPA vs utility rate calculator
A power purchase agreement (PPA) sells the home the panels' power at a set rate per kWh. Compare that rate, with its yearly increase, against what the same power would cost from the utility.
How it works
Both rates grow by their yearly increase. Each year's cost is that year's rate times the kWh the panels make, added up over the years left. Everything runs in your browser; nothing you type is sent anywhere.
Questions
What is a solar PPA?
A power purchase agreement is a contract where a solar company owns the panels on the home and sells the electricity they make to the homeowner at a set rate per kWh, usually with a yearly increase.
How do I find my utility rate per kWh?
Divide the energy charges on the electric bill by the kWh billed, or use the rate in the utility's published residential tariff. Include delivery charges that are billed per kWh.
Do utility rates really go up every year?
Over long periods U.S. residential electricity prices have generally risen, but not every year and not at the same pace everywhere. Trying a few increase rates shows how sensitive the comparison is.
What happens to a PPA when the house sells?
The buyer usually takes over the PPA after the solar company approves them, or the seller buys out or prepays it. The rate and escalator continue as written.
Have the actual contract?
These calculators use the numbers you type. RateMySolar reads the contract itself and gives a graded report card with the MLS solar fields and a remarks description included, for $49.99.
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Estimates only · not financial or legal advice