A solar PPA, or power purchase agreement, lets you use rooftop solar electricity without buying the panels. A solar company or financing partner owns the system. You agree on the price of the electricity it produces.
The benefit is simple: with a $0-upfront PPA priced below your utility rate, your solar electricity costs less from day one. You pay nothing out of pocket to install the solar system. So your savings begin as soon as the panels start powering your home.
For example, suppose your utility charges 25 cents for a unit of electricity (kWh). If your PPA charges 8 cents, that same amount of solar electricity costs 17 cents less. That is a 68% savings on the energy generated.
Below, we compare PPA rates of $0.00, $0.08, and $0.15 per kilowatt-hour. You will see what each rate means for a monthly bill and why DC’s zero-cent offer may not last.
What a solar PPA means for your home
Think about how you buy electricity today. You pay for power without owning the power plant. A solar PPA works in a similar way, except the equipment sits on your roof.
You still own your home. The provider owns the solar system, and your agreement sets the electricity rate and service responsibilities. The installer and system owner may be different companies, so your proposal should identify both.
Solar panels turn sunlight into electricity that your home can use. As a result, you need to buy less electricity from the utility.
How a solar PPA works
First, we review your roof and electric bill. Sunlight, shade, roof condition, and energy use help determine whether solar makes sense.
Next, you review your offer. It explains the rate, contract length, maintenance, and any other costs.
Then, we install the system. It can begin operating after the required permits, inspections, and utility approval.
Finally, your home uses the solar electricity. The system owner handles the maintenance and service covered by your agreement.
Solar PPA rates explained in dollars
Electricity is measured in kilowatt-hours, shortened to kWh. Think of a kWh as one unit of electricity on your bill. Your PPA rate is the price you pay for each unit the panels produce.
For example, $0.08 per kWh means 8 cents, and $0.15 means 15 cents. At $0.00 per kWh, the solar electricity costs you nothing.
Now imagine a home that uses 900 kWh in one month. The panels produce 600 kWh, all used by the home. The utility supplies the remaining 300 kWh.
For this example, utility electricity costs 25 cents per kWh, plus $15 in fixed monthly charges. Without solar, the bill would be $240. Here is how three PPA rates change that total.
| Monthly cost | $0.00 PPA per kWh | $0.08 PPA per kWh | $0.15 PPA per kWh |
| Solar electricity 600 kWh | $0 | $48 | $90 |
| Utility electricity 300 kWh | $75 | $75 | $75 |
| Fixed utility charges | $15 | $15 | $15 |
| Total electricity cost | $90 | $138 | $180 |
| Savings versus $240 | $150 | $102 | $60 |
In all three examples, the solar rate is lower than the utility rate. That is why the combined monthly cost drops. With $0 upfront for the solar installation, there is no initial solar purchase to earn back.
Illustrative month, not a quote or current Pepco rate. Assumes all solar electricity is used in the home, with no exports, taxes, or other fees. Actual savings depend on your rates, usage, production, utility credits, and contract terms.
Why solar PPA rates differ by area
Local incentives, installation costs, sunlight, and financing all affect the rate a provider can offer. Because those factors vary, the same offer will not be available everywhere.
DC’s incentives can support a zero-cent PPA for eligible homes. In other areas, a paid PPA may still lower electricity costs. The 8-cent and 15-cent examples show how those offers work. They are not advertised rates for Maryland, Virginia, or another specific state.
How a zero cent solar PPA works in DC
Uprise’s zero-cent DC PPA has two separate benefits: $0 for solar installation and $0.00 per kWh for solar electricity. The solar rate stays at zero for the 20-year agreement, with no annual increase.
However, a zero-cent PPA does not mean every charge on your Pepco bill disappears. You can still owe money for electricity from the grid and fixed utility charges.
Also, keep the two prices separate when comparing offers. A PPA with $0 upfront can still charge 8 cents, 15 cents, or another rate for electricity.
How the solar company gets paid
The system still costs money, even when the homeowner pays nothing for the installation or solar electricity. DC’s incentives help cover those costs.
One source is Solar Renewable Energy Credits, or SRECs. These credits have value because electricity suppliers buy them to meet DC’s solar requirements.
Under Uprise’s zero-cent PPA structure, the system owner keeps the SREC income. Eligible federal business tax credits also help fund the project. Together, these benefits help pay for installation and ongoing service.
You receive the solar electricity at the agreed rate. However, you do not also receive the SREC payments that the system owner keeps.
Why DC zero cent PPAs may not be available much longer
If you live in DC, do not assume today’s $0.00 PPA will be available indefinitely. Changes to the federal business solar tax credit are shortening the window that helps support these offers.
The credit reduces the system owner’s project cost. Without that support, a provider may need to charge for electricity to make a new project work. That is why future offers could shift from zero-cost electricity to a paid PPA.
For solar projects that begin construction after July 4, 2026, the general deadline to enter service is December 31, 2027. Meeting that deadline is one requirement for the Section 48E business tax credit. Projects that met the earlier construction deadline may qualify later, subject to continuity and other eligibility rules.
These are project deadlines, not one expiration date for every zero-cent offer. Financing and installation schedules also affect availability. Signing a PPA alone does not establish tax credit eligibility.
The IRS guidance on solar tax credit deadlines explains the rules. For homeowners, the next step is simpler: ask whether your home qualifies and what timeline your project needs.
These changes affect new offers. If you already have a PPA, your signed agreement governs your electricity rate.
Will you still have a utility bill
Yes, your home stays connected to the electric grid. At night, or when your home needs more power than the panels produce, the utility supplies the difference.
When the panels produce more than your home needs, the extra electricity can flow to the grid. Net metering provides bill credits under your utility’s rules. These utility credits are separate from the SRECs described above.
With a paid PPA, you may have two bills: one for solar electricity and one from your utility. Compare their combined total with what you would have paid without solar.
For more detail, read our guide to net metering.
Solar PPA vs lease vs buying
A PPA is one way to go solar. Here is how it differs from leasing or buying the equipment.
| Option | Who owns the panels | What you pay for |
| Solar PPA | Provider or financing partner | Electricity the system produces |
| Solar lease | Leasing company | Use of the equipment through scheduled payments |
| Cash purchase or loan | You | The system, upfront or through loan payments |
A solar PPA can suit homeowners who want lower electricity costs without buying the system. Buying may suit someone who wants ownership and the benefits available to system owners. Either way, compare the total costs and responsibilities over time.
What if your roof needs work
Your roof should be ready before the panels go on. If it needs repairs or replacement, ask about that cost before signing. A $0-upfront solar offer does not automatically include a new roof.
At Uprise Solar & Roofing, our solar and roofing teams can review both parts of the project together. Also ask who pays to remove and reinstall the panels if your roof needs work later.
Questions to ask before signing a solar PPA
Before moving forward, make sure the agreement answers these questions in language you understand:
What is my starting rate, and can it increase each year?
Is installation $0, and are there any other fees?
How long is the contract, and who handles maintenance?
What happens if the system produces less than expected?
What happens if I sell my home or want to buy the system?
Who owns the panels at the end, and what will that cost?
Some contracts include an escalator, which is an annual increase in the solar rate. A paid PPA bill can also change with monthly solar production. Therefore, review the future rates and expected annual costs along with the starting price.
Common questions about solar PPAs
Can I sell my home with a PPA?
Yes, but the agreement becomes part of the sale process. For example, the buyer may need approval to take over the contract. Your agreement should explain transfer requirements, possible fees, and buyout options. Contact your provider early so you can plan ahead.
Will I own the panels when the agreement ends
That depends on the contract. It should explain whether ownership transfers, you can buy the system, you can renew, or the provider removes it. Also ask whether any of those options involve a fee.
Will the panels work during a power outage?
A standard grid-connected solar system shuts down when the grid goes out. Backup power usually requires a battery and compatible equipment. A PPA alone does not provide that backup.
Find out what a solar PPA could save you?
You do not need to become a solar expert to understand your options. Start with your electric bill, your roof, and a clear comparison of costs.
Uprise Solar & Roofing helps homeowners in DC, Maryland, and Northern Virginia explore solar. We can review your home, explain the options available, and show how the numbers compare.
If you live in DC, ask about zero-cent PPA availability now. The federal tax credit changes mean you should not assume the same offer will be available months from today.