Solar PPA Explained — Power Purchase Agreement
Published 2026-02-20 · Updated 2026-07-07 · MySunROI Research Team
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A Power Purchase Agreement (PPA) means you buy solar electricity from a company that owns panels on your roof — $0 down, no ITC for you, long contract with annual escalators.
How PPAs work
- $0 upfront
- Pay per kWh generated (~$0.10–$0.18/kWh)
- Company owns system and claims ITC
- 20–25 year contract typical
PPA vs buy
Buying saves more long-term. PPAs suit homeowners who cannot use tax credit.
Solar costs by state
Frequently Asked Questions
PPA or lease?
Similar — PPA charges per kWh, lease charges fixed monthly. Both: no ownership.