Owning solar is a much better venture than leasing / PPA.
When you lease or use a PPA ( power purchase agreement ) you save a little bit of money every year. You are still really paying a premium for electricity, usually from equipment that is on your own property.
When you own your solar, the cost per KWH is much - much - less.
Lets look at a 10 year snippet in time:
House A uses 10000 KWH a year. The owner signed a lease and will save 10% on this years bill. Currently, the average KWH cost is $0.42, or $4200 a year. A 10% savings is $420 this year. But wait- the lease / PPA has an annual increase of 2.9% Hmmmm-
House B hears what House A has to say and doesn't think that is a good deal. The owner calls NVEnergyLLC and asks for the real scoop. NVEnergyLLC says a 10000KWH system typically costs $33,000, using excellent equipment with 25 year warranties. With the current incentives of MA CLASS 1- REC incentive payment of ~$35/MWH (1000KWH), the effective cost that House B would pay is $0.295/KWH over 10 years, and no annual increase ever.
Without looking at price increases, using today's values for simplicity. (No TVM today...)
The 10 year- Do Nothing- cost is $42000
The 10 year lease/PPA cost for electricity is $37800
The 10 year owning cost is $28500
Lets look at years 10-20....
The 10-20 year- Do Nothing- cost is $42000
The 10-20 year lease/PPA cost for electricity is $37,800
The 10-20 year owning cost is $0.00
The total cost for 20 years - Do Nothing - $84000
The 20 year total for lease/PPA cost is $75600
The 20 year total of owning solar is still $28500
The cost difference is real. $55K+. That is money that can be used for education, fantastic vacations, or just re-invest.
Why Lease or use a PPA? It just does not make financial sense.
Call NVEnergyLLC today and see what we can do for you.
