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Solar PPA Vs Owned Calculator

Solar can be leased or owned. This calculator compares.

kW
$
$
$

Ownership NPV

$311,384

PPA NPV

$178,967

Ownership capital cost

$450,000

How the math works

Ownership NPV = -(cost − tax credit) + 25-year discounted energy savings. PPA NPV = 25-year discounted (grid − PPA).

250 kW at $1,800/kW × 30% credit → $315k net. Savings $49k/yr. Ownership NPV $311k. PPA NPV $179k. Ownership wins if capital available; PPA capital-efficient alternative.

How to Use

  1. Enter system size kW.
  2. Enter ownership cost per kW.
  3. Enter PPA rate per kWh.
  4. Enter grid rate per kWh.
  5. Enter annual kWh per kW.
  6. Enter term years.
  7. Read decision.

Frequently Asked Questions

PPA basics?

Third party installs and owns solar. Property owner buys electricity at PPA rate (usually below grid). Term 15-25 years. No capital outlay. No maintenance. Revenue-share simpler than owning. 70% of commercial solar installed under PPAs.

Ownership benefit?

Keep all generation savings. Federal tax credit (30%+). Depreciation benefits. Full energy savings during life. Better IRR if willing to deploy capital. Tradeoff: capital cost, operational responsibility, system risk.

Breakeven?

Ownership breakeven over 25 years: IRR 8-12% post-tax typical. PPA breakeven: 2-4% savings vs grid over term. Both accretive; ownership superior if capital available. PPA better for capital-constrained or risk-averse.

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