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Get a Free QuoteTwo TPO models, two very different payment structures. Propel offers fixed monthly payments and ownership at year 5. Solar PPAs charge per kilowatt-hour with no ownership path. Both capture the Section 48E ITC. This guide compares costs, risks, and outcomes to help you choose.
Fixed
Propel: same payment month 1 to month 300
Per-kWh
PPA: pay only for electricity produced
Year 5
Propel ownership vs never with most PPAs
Quick Answer
Propel and solar PPAs are both TPO products that capture the Section 48E ITC, but they work differently. Propel charges a fixed monthly payment ($230-$270 for a typical system) that never changes, and ownership transfers at year 5. A solar PPA charges per kWh produced ($0.12-$0.16/kWh typically) with 1-3% annual escalators, and the PPA company usually keeps ownership for the full 20-25 year term. Propel offers more payment predictability and a clear ownership path. PPAs offer production-based pricing (you only pay for what is generated) and are available in more states. Over 20 years, Propel typically costs less when accounting for the asset value you retain.
Both Propel and solar PPAs belong to the third-party ownership (TPO) family. In both cases, a company or investor owns the solar system on your roof and you pay for the benefit of its electricity production. The critical difference is the payment structure and what happens after the initial term.
Think of Propel as a fixed-cost path to ownership and a PPA as a variable-cost electricity subscription. Both save money compared to full utility rates, but the financial trajectory and ownership outcome are fundamentally different.
The payment structure is the most practical daily difference between Propel and a PPA. It affects budgeting, seasonal costs, and your long-term financial planning.
| Month/Season | Propel Payment | PPA Payment (Year 1) | PPA Payment (Year 10) |
|---|---|---|---|
| January (low production) | $250 | ~$84 | ~$106 |
| April (moderate) | $250 | ~$140 | ~$177 |
| July (peak production) | $250 | ~$182 | ~$230 |
| October (moderate) | $250 | ~$126 | ~$159 |
| Annual Total | $3,000 | ~$1,820 | ~$2,300 |
PPA assumes $0.14/kWh starting rate with 2.5% annual escalator and 13,000 kWh annual production. Production varies seasonally.
With Propel, your payment is the same every month regardless of season, weather, or system production. This makes budgeting simple: you know exactly what you will pay in January and July, year 1 and year 25. There is never a surprise on your bill. For homeowners who value predictability and simplicity, this is a significant advantage.
With a PPA, you only pay for electricity that is actually produced. If the system underperforms due to weather, shading, equipment issues, or anything else, your payment drops proportionally. This is a built-in hedge against underperformance. In low-production months (winter, cloudy periods), your cost is naturally lower. For homeowners who want to pay only for results, this is compelling.
To fairly compare costs, we need to look at total payments over 20 years — the typical PPA contract length — and account for what you own at the end.
On raw payment totals, a PPA is often competitive with or cheaper than Propel over 20 years. But this comparison misses a critical factor: at year 20, a Propel homeowner owns a solar system worth $10,000-$15,000 that will continue producing free electricity for 5-10 more years. A PPA homeowner owns nothing and must either buy the system at fair market value, sign a new contract, or have it removed. When you factor in the asset value, Propel's net cost is typically lower.
| Category | Propel | Solar PPA |
|---|---|---|
| Payment Structure | Fixed monthly (same for 25 years) | Per-kWh (varies by production) |
| Annual Escalator | None | 1-3% per year typical |
| Summer vs Winter Payment | Same every month | Higher summer, lower winter |
| Ownership Transfer | Year 5 (automatic) | Never (or FMV buyout at term end) |
| Upfront Cost | $0 | $0 |
| ITC Captured | 30-50% | 30% |
| Production Risk | You (but 85% guarantee yrs 1-5) | PPA company (you pay only for production) |
| Home Sale Process | Clean after year 5 (owned) | Requires PPA transfer and approval |
| Home Value Impact | +4.1% after year 5 (owned solar) | Mixed (similar to lease) |
| Maintenance | Included years 1-5 | Included full term |
| Payment Predictability | Very high (fixed) | Moderate (varies with production) |
| State Availability | ME, TX (waitlist: 7 more) | Most states (not all allow PPAs) |
| Min Credit Score | 660 FICO | Varies (often 580-650) |
| Equipment Choice | Silfab 440W | Provider decides |
| Contract Term | 25-year loan | 20-25 year PPA |
PPAs have genuine strengths that make them the right choice for certain situations. Here is where a PPA outperforms Propel.
With a PPA, if the system produces nothing (snow cover, equipment failure), you pay nothing. This eliminates production risk entirely. With Propel, your fixed payment is due regardless of production (though the 85% guarantee provides a credit for significant underperformance).
PPA payments start lower than Propel payments because you are only paying for per-kWh production. In year 1, a PPA might cost $1,820 annually vs Propel's $3,000. For homeowners focused on immediate monthly savings, PPAs deliver more from day one.
PPA companies maintain the system for the entire 20-25 year contract because they own it and need it to perform. Propel provides maintenance for only the first 5 years. After that, maintenance is your responsibility (though solar systems need very little maintenance).
PPAs typically have lower credit requirements (580-650 vs Propel's 660), are available in more states, and are offered by many large providers (Sunrun, SunPower, local companies). For homeowners who cannot access Propel due to location or credit, a PPA may be the best TPO option.
This is Propel's defining advantage. After year 5, you own a solar system that will produce free electricity for 20+ more years. A PPA homeowner pays for every kWh for the full contract term and never gains ownership unless they buy out at the end.
Propel's fixed monthly payment never changes. You know your solar cost in July 2036 right now. PPA payments vary by month and increase annually. For budgeting certainty, Propel is superior.
After year 5, Propel solar is owned solar — Zillow data shows a 4.1% home value premium for owned systems. PPAs have a mixed impact on home value, similar to leases. Some appraisers assign no additional value to PPA systems since the homeowner does not own them.
Propel captures up to 50% ITC (30% base + 10% FEOC with Silfab + 10% energy community). Most PPA providers capture only the 30% base ITC and may not use FEOC-compliant equipment. The additional ITC translates to lower payments for Propel customers.
After year 5, selling a home with Propel is identical to selling a home with cash-purchased solar. No PPA company approval, no buyer credit check, no contract transfer. The system conveys with the home as an owned asset.
Propel's payment is flat for 25 years. PPAs escalate 1-3% annually, meaning your year-20 payment is 22-81% higher than your year-1 payment. Over time, the PPA cost advantage erodes.
If you are considering a PPA, here are the largest providers and what distinguishes them.
The largest residential solar company in the US, Sunrun is the dominant PPA provider. They offer both lease and PPA options, with per-kWh rates that are typically competitive in their service areas. Sunrun uses their own branded panels and provides full-term maintenance. Their PPA escalator is typically 1.99-2.99% annually. Available in most major solar states.
SunPower offers PPAs using their premium Maxeon panels, which are among the highest-efficiency residential panels available. Their per-kWh rates may be slightly higher than competitors, but the higher-efficiency panels produce more energy per square foot. SunPower is available in select states.
Many local solar companies offer PPA options through partnerships with tax equity investors. These can sometimes offer more competitive per-kWh rates or more flexible terms than national providers. Ask about the specific escalator percentage, contract term, buyout options, and what happens at the end of the term.
Not all states allow solar PPAs. Some states restrict third-party electricity sales, limiting PPA availability. As of 2026, PPAs are available in most states but may have regulatory restrictions in some markets. Check your state's specific regulations. Propel, as a loan + ESA structure rather than an electricity sales agreement, may be available in states where PPAs are restricted.
Enter your monthly electric bill to compare lease escalators vs. fixed Propel ownership payments.
Compare lease escalators vs. Propel ownership by state
Lease Total
$64,356
over 25 years
Propel Total
$31,824
fixed 25 years, own yr 5
You Save
$32,532
with Propel
Crossover Year
Year 1
Lease > Propel
Auto-sized system: Based on your $200/mo bill in Massachusetts, a ~6.5 kW system would offset your usage, producing ~7,800 kWh/year.
Lease: $141/mo starting (PPA at $0.22/kWh = 70% of utility rate) | Propel: $102/mo fixed for 25 years | System: $20,020 (6.5 kW @ $3.08/W)
Massachusetts is on the Propel waitlist — join the waitlist
The best financing choice depends on your specific situation — home location, electricity rates, how long you plan to stay, and your financial priorities. Get a personalized Propel quote to compare against PPA offers in your area.
NuWatt provides this guide as an independent informational resource. Propel is a product of Concert Finance / SolSource.