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Solar PPA Vs Owned Calculator
Solar can be leased or owned. This calculator compares.
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
- Enter system size kW.
- Enter ownership cost per kW.
- Enter PPA rate per kWh.
- Enter grid rate per kWh.
- Enter annual kWh per kW.
- Enter term years.
- 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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