Solar PPA Vs Ownership Calculator

PPA and ownership offer different solar economics profiles.

Annual kWh

PPA rate $/kWh

Utility rate $/kWh

Ownership cost

System life years

Ownership vs PPA

$550,000

PPA lifetime savings

$875,000

Ownership lifetime savings

$1,425,000

How the math works

PPA: savings = kWh × (utility − PPA). Ownership: full utility value × life − install cost.

500k × $0.07 × 25 = $875k PPA vs $1.875M − $450k = $1.425M ownership = $550k ownership advantage.

How to Use

Enter annual kWh consumption.
Enter PPA rate.
Enter utility rate.
Enter ownership install cost.
Enter system life years.
Read comparison.

Frequently Asked Questions

PPA vs ownership?

PPA: solar developer owns, sells power at fixed rate. No upfront cost. Lower immediate savings. Simpler. Ownership: upfront $20-50k typical for commercial. Higher long-term savings. Retain tax credits. Manage maintenance.

PPA economics?

PPA rate typically $0.05-0.12/kWh. Utility rate $0.12-0.25/kWh. Savings 30-60% on power cost. Fixed rate for 15-25 years with escalation (2-3% annually). Developer profits from ownership tax credits.

Ownership economics?

Install cost $2.50-3.50/watt DC (2024). Federal ITC 30%. Depreciation 5-year MACRS. State incentives variable. Net cost after tax credits: 40-50% of gross. Payback 5-8 years typical, 20-25 year useful life.

How often should I rerun this?

Rerun this calculator whenever inputs change materially — new rent roll data, rate moves, loan balance updates, or quarterly operating data. For active deals, monthly refresh is typical. For stabilized assets under monitoring, quarterly is fine. Treat the output as a decision tool, not a one-time answer — market conditions evolve and so should your analysis.