Solar escalator calculator
An escalator raises a solar lease or PPA payment by a set percentage every year. Enter today's payment, the increase and the years left to see the total still to pay and what the last payment will be.
How it works
Each year's payment is last year's payment times (1 + the increase). The calculator adds up twelve payments for each remaining year and compares that with the same years at today's payment. Everything runs in your browser; nothing you type is sent anywhere.
Questions
What is a solar escalator?
An escalator is a clause in a solar lease or power purchase agreement that raises the monthly payment or the rate per kWh by a fixed percentage each year, commonly between 0% and 3.9%.
How much does a 2.9% escalator add?
Over 20 years a 2.9% yearly increase makes the final payment about 72% higher than the first, and the total paid about 33% more than 20 years at the starting payment.
Does the escalator transfer to a home buyer?
Yes. A buyer who takes over a lease or PPA takes over its schedule, including the escalator, from wherever the contract is when they assume it.
Is an escalator always bad?
Not necessarily. Utility rates also rise. What matters is how the contract's rate compares with what the same power would cost from the utility over the same years.
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.
Upload the contractMore free tools: all solar calculators · solar glossary
Estimates only · not financial or legal advice