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A Solar PPA is a contract where a third-party developer owns, installs, and maintains the solar system on your property. You purchase the electricity generated at a fixed rate, typically 10-30% below your current utility rate. No upfront cost, no maintenance responsibility.
Most PPAs offer electricity at 10-30% below current utility rates. For a business paying $0.15/kWh, a PPA rate of $0.10-0.12/kWh would save $15,000-$25,000 annually on a 100kW system. Savings grow as utility rates increase while PPA rates remain fixed or increase at a slower rate.
Fixed $/kWh rate (typically $0.08-0.18/kWh)
Based on a 100kW commercial system
Businesses wanting $0 upfront cost
Companies seeking immediate savings without capital outlay
Organizations without sufficient tax liability for ITC
Businesses that prefer off-balance-sheet treatment
$0 upfront cost — developer covers everything
Immediate electricity savings from day one
No maintenance, monitoring, or insurance responsibility
Off-balance-sheet treatment (operating expense)
Fixed energy rate provides budget certainty
Developer handles permitting, interconnection, maintenance
You don't own the system or claim the ITC
Lower total savings over 25 years vs. ownership
Long-term contract (15-25 years) with escalation clauses
May complicate property sale or lease negotiations
Rate escalators (1-3%/year) reduce savings over time
Early termination fees can be significant
$0 upfront
A solar lease is similar to a PPA but involves fixed monthly payments instead of per-kWh pricing. The third-party lessor owns the system, and you pay a predictable monthly amount regardless of production. Operating leases can be off-balance-sheet under certain conditions.
$0 upfront
Commercial Property Assessed Clean Energy (C-PACE) finances solar through a voluntary property tax assessment. The loan attaches to the property (not the owner), with repayment through property tax bills over 20-30 years. This unique structure enables 100% financing with no personal guarantee.
10-20% down payment typical upfront
A traditional term loan or SBA loan used to purchase a commercial solar system outright. The business owns the system from day one, claiming the full ITC, MACRS depreciation, and all energy production benefits. Multiple loan products are available including SBA 504/7(a) loans, commercial bank loans, and green bonds.
Most PPAs offer electricity at 10-30% below current utility rates. For a business paying $0.15/kWh, a PPA rate of $0.10-0.12/kWh would save $15,000-$25,000 annually on a 100kW system. Savings grow as utility rates increase while PPA rates remain fixed or increase at a slower rate.
Site-specific pricing with exact incentive calculations. No obligation.