Is This PPA a Good Deal?
Paste in a solar Power Purchase Agreement offer and compare its true lifetime cost against staying with your utility. The math that sales reps skip: total 25-year cost, break-even year, and the escalation clauses that quietly erase your savings.
Your PPA Offer
Per kWh (e.g. 0.13)
Per year (0 = flat)
Per kWh (EIA national avg shown)
US avg ~10,715
Advanced assumptions
EIA historical avg ~3.5%/yr
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How the math works
For each year Y of the contract, the PPA rate steps up by the escalation rate while the utility rate steps up by your assumed utility escalation. Annual cost equals rate times your annual usage. We sum both sides over the full term and find the first year cumulative utility cost exceeds cumulative PPA cost (the break-even point).
The utility default rate ($0.1844/kWh) is the EIA May 2026 US residential average. The default 3.5%/yr utility escalation is the EIA long-run historical average. Always pressure-test the escalation clause: a 2.9% escalator sounds small but compounds to a 44% higher PPA rate by year 13.