Solar PPA & Lease Rate Benchmark
Third-party ownership (PPAs and leases) is now the majority financing method at 55% of installer product mix, up from 43% post-OBBBA, yet no public database publishes state-level rates. This is a curated reference compiled from installer quotes, regulatory filings, and marketplace data, refreshed quarterly.
National Context
PPA Rate Range
$0.08–$0.28/kWh
national, varies by state & installer
Typical Escalator
0–3% annually (2026 market)
annual rate increase
TPO Market Share
55%
installers' top product (Aurora Solar 2026)
State Detail
Pick a state to see its PPA/lease rate, ownership recommendation, and cash payback range.
Select a state above to see detailed PPA/lease pricing and ownership guidance.
All 7 States Compared
| State | PPA / Lease Rate | Ownership Rec. | Cash Payback |
|---|---|---|---|
| California (CA) | $0.18–$0.22/kWh | Lease competitive — evaluate carefully | 12–16 yrs |
| New Jersey (NJ) | Not publicly reported | Cash wins | 9–11 yrs |
| Massachusetts (MA) | Not publicly reported | Cash wins | 9–12 yrs |
| Arizona (AZ) | $0.10–$0.13/kWh | Lease competitive | 11–14 yrs |
| Texas (TX) | Not publicly reported | Lease often better | 12–16 yrs |
| Nevada (NV) | Not publicly reported | Lease/PPA worth strong consideration | 12–15 yrs |
| Florida (FL) | Not publicly reported | Both cash and lease pencil | 12–15 yrs |
Only California and Arizona publish per-kWh PPA rate ranges. Other states show ownership-model guidance rather than a specific $/kWh figure.
How to Read PPA Rates
$/kWh vs Flat Monthly
A PPA charges you per kWh the system produces. A lease is often a fixed monthly payment for the system itself, so a low $/kWh and a low monthly payment aren't the same thing.
Escalators Compound
A 2.9%/yr escalator compounds over the term; by year 10 your rate is far higher than year 1. Always model the total 25-year cost, not only the headline starting rate.
Who Gets the Tax Credit
Under post-OBBBA rules the ITC follows ownership. Third-party-owned (TPO) systems typically pass the value to you as a lower rate rather than a credit you can claim.
Methodology & Data Sources
Rates are compiled from The Solar Brief (7-state editorial analysis), SmartEnergyUSA, EnergySage aggregate reports, and r/solar user reports. No single public API exists for residential PPA rates, so this dataset is curated and refreshed quarterly.
- Only CA and AZ have publicly reported per-kWh PPA rate ranges.
- States marked "Not publicly reported" show ownership-model guidance instead of a fabricated $/kWh.
- Use these figures as a benchmark to compare against actual installer quotes; rates vary by installer, system size, credit, and roof.
Last updated: 2026-06-26
PPA & Lease Rate Questions
What is a solar PPA?
A Power Purchase Agreement (PPA) is a per-kWh contract: you don't buy the panels, you buy the electricity the system produces at an agreed rate. The installer owns and maintains the system.
PPA vs lease: what's the difference?
With a PPA you pay per kWh produced. With a lease you pay a fixed monthly amount for the system regardless of output. Both are third-party ownership; you don't own the equipment.
Why are PPA rates not shown for every state?
There is no public database of residential PPA rates. The data is scattered across installer disclosures, regulatory filings, and marketplace reports. We only publish a $/kWh figure where multiple sources corroborate it.
Are these rates negotiated or fixed?
Rates vary by installer, system size, your credit, and roof characteristics. Treat these figures as a benchmark to compare against the quotes you receive, not as a guaranteed price.
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Incentive FinderFind state and local solar incentives for your area.
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Compare Solar QuotesThis reference page provides general guidance based on curated 2026 market data. It is not financial or legal advice. Rates and incentives change, so always confirm current terms with your installer before signing.