The plain-English PPA guide
A power purchase agreement (PPA) lets you use solar without buying the panels. A provider owns the system, and you pay for the electricity it produces under your agreement. Eligible SunnyMac projects can start with as little as $0 down.
SunnyMac lists lease and PPA options with an initial investment as low as $0 down. For a qualifying PPA, you do not purchase the solar equipment upfront. Ask for the written proposal to confirm whether installation, permits and other charges are included. Roof repairs, electrical upgrades, a battery or other work may have separate costs.
First, share your location and electricity needs. The project team reviews your roof, sunlight, utility and provider requirements. If an option is available, you receive a proposal showing the system, electricity rate and agreement terms. Installation follows the required approvals. Solar operation starts after the utility permits the system to operate.
Instead of purchasing the panels, you buy the electricity they produce at the price in your PPA, commonly expressed in cents per kilowatt-hour (kWh). A kWh is a unit of electricity. Your solar charge depends on the agreement, billed production and rate. You may also receive a utility bill for grid electricity and fixed charges. Compare both bills together.
Ask for the starting rate and whether it stays level or increases over time. An annual increase is often called an escalator. Review estimated combined solar and utility costs using your actual usage, expected production and the utility-rate assumptions in the proposal. Savings and a zero utility bill are not guaranteed.
The PPA provider owns the equipment. Review who handles monitoring, repairs, insurance and warranty service, including response times and exclusions. Ask who pays to remove and reinstall panels for future roof work. Because you do not own the system, do not assume ownership-based incentives belong to you.
Review the full contract length, all fees, rate changes, production assumptions and any early-exit or buyout costs. Ask what happens if you sell your home: a buyer may need approval to assume the agreement. At the end, ownership does not transfer automatically; renewal, purchase or removal options depend on the contract.
Your home. Your agreement.
No-upfront-cost options are subject to property and provider approval. Electricity payments, utility charges and other project costs may apply. Exact rates, coverage, eligibility and terms come from your written agreement.
Ask about a $0-upfront PPAA qualifying PPA may have $0 upfront system cost. SunnyMac publishes options as low as $0 down. Your property, location, utility, provider approval and written proposal determine availability. Confirm any separate roof work, electrical upgrades, fees or other charges before signing.
No. A PPA is an agreement to purchase solar electricity from the provider that owns the system. You have ongoing payment obligations. No-upfront-cost describes the initial system payment, not free electricity.
With a loan, you generally buy the system and repay borrowed money. Under a PPA, the provider owns the system and sells you its electricity. A lease typically charges for use of the equipment. Compare each written agreement’s payments, responsibilities and total cost.
Usually, yes. Grid electricity, fixed charges and your utility’s credit rules still matter. Ask for a comparison of the PPA payment plus your remaining utility bill against your current electricity costs.
It can if your agreement includes scheduled increases. Ask whether the offer has a level rate or an escalator, how each increase is calculated and what later-year payments could look like.
A review considers your service address, roof condition, available sunlight, electricity usage and provider requirements, which may include a credit review. Utility approvals are also required. Sending this form does not check your credit, determine eligibility or commit you to a contract.
Do not assume it is. Roof work and solar are separate scopes unless the written proposal explicitly includes both. Ask what is included, who performs the work, what it costs and who is responsible for the warranties.
Review transfer approval, buyer requirements, buyout prices and early-exit charges before signing. End-of-term choices can include renewal, purchase or removal under the contract. Ownership is not automatic.
Read the source
SunnyMac — pricing and financing optionsU.S. Department of Energy — homeowner solar guideFTC — solar payments and contract questionsU.S. Treasury — before signing a PPA (PDF)Source verification: September 20, 2026. SunnyMac describes options as low as $0 down. The homeowner’s written proposal controls the actual offer.