California Solar PPA — 2026 Guide
PG&E Charges $0.47–$0.63/kWh.
A Solar PPA Locks You In at $0.17–$0.27.
A Power Purchase Agreement puts solar on your roof for $0 down. You pay only for the electricity it produces — at a rate locked well below your utility. No ownership, no maintenance, no tax credit required. GoodLeap, LightReach, and EnFin are available now for California homeowners.
No credit pull to get started · Serving PG&E, SCE, SMUD, SDG&E & Pioneer · Install by Solar Savings Direct CSLB #1065773
How It Works
What Is a Solar Power Purchase Agreement?
A solar PPA is a contract where a third-party company installs solar panels on your roof at no cost to you. You agree to buy the electricity they produce at a fixed per-kWh rate — set below your utility's current price. The provider owns the system, handles all maintenance, and guarantees performance. You just pay for the power at your contracted rate and enjoy the savings from day one.
System Designed for Your Home
Your roof, your utility rate, and your usage determine system size. We design it to offset your bill — not a one-size average.
Provider Sets Your Fixed Rate
GoodLeap, LightReach, or EnFin sets your per-kWh PPA rate — locked below your current utility price. A soft credit pull confirms eligibility before any hard pull occurs.
Installation — Permits Handled
The PPA provider files permits. Our licensed crew installs the system. Timeline from approval to Permission to Operate (PTO) is typically 6–12 weeks.
Savings Start at PTO
Once your utility grants Permission to Operate, your system goes live. Your utility bill drops. You pay the PPA provider for what the panels produce — at your locked rate.
Maintenance Included — No Responsibility
The provider monitors, maintains, and repairs the system for the full 20–25 year term. If production falls short, they're responsible — not you.
A Solar PPA Is Right for You If:
- You want $0 upfront and no financing
- You don't need or want to own the system
- You have no federal tax liability (retired, fixed income)
- You want the simplest path to a lower bill
- You're on PG&E, SCE, or SDG&E with high rates
- You want maintenance included for the life of the system
A PPA May Not Be Best If:
- You want to own the system and build equity
- You're a SMUD customer (lower utility rates = smaller savings margin)
- You want maximum long-term ROI (prepaid lease wins here)
- You plan to sell soon and prefer a clean title
Not sure which option fits? We compare PPA vs. prepaid lease side by side for every homeowner. Run your numbers →
How Does a PPA Compare to a Lease and Prepaid Lease?
California homeowners have three $0-ownership paths to solar. Here's how they differ:
| Factor | Solar PPA | Solar Lease | Prepaid Lease |
|---|---|---|---|
| What You Pay | Per kWh produced | Fixed monthly fee | One upfront payment (30% off) |
| Upfront Cost | $0 | $0 | Discounted system cost |
| Monthly Payment | Varies with production | Fixed regardless of output | $0 — paid in full upfront |
| Who Owns System | PPA Provider | Leasing Company | You own after 5 years |
| Tax Credit (48E) | Provider claims — passed to you as lower rate | Provider claims — passed to you as lower payment | Provider claims — passed as 30% upfront discount |
| Maintenance | Included | Included | Included (5 yrs, then yours) |
| Rate Escalator | 0%–2.99% annually | 0%–2.99% annually | None — prepaid in full |
| Long-Term Savings | Moderate | Moderate | Highest of the three |
| Best For | $0 down, no ownership, simplest path | Predictable fixed payment | Maximum savings, ownership path |
*Rate escalator applies to monthly PPA/lease payments only. Prepaid lease has no ongoing payments. 48E ITC eligibility subject to provider qualification — verified at time of proposal. Source: IRS.gov.
Why PPAs Still Work in 2026 — The 48E Commercial Tax Credit
The federal 30% tax credit for homeowners (Section 25D) expired December 31, 2025. But PPAs, leases, and prepaid leases still deliver 30% savings — because the leasing company claims the commercial 48E Investment Tax Credit and passes that savings directly to you through a lower per-kWh rate or upfront discount. No personal tax liability needed. This is why $0-down solar still works in 2026 even though the homeowner credit is gone.
Provider Comparison — 2026
Which Solar PPA Company Is Best for California?
We work with three PPA providers — GoodLeap, LightReach, and EnFin. Each has different strengths depending on your utility, credit profile, and whether you want battery storage included.
LightReach
By Palmetto. The only PPA provider that bundles solar panels and a home battery in one agreement — the strongest structure for PG&E and SCE customers under NEM 3.0.
GoodLeap
One of the largest solar financing platforms in the US — $32B+ financed since 2018. Clean digital process, flexible escalator options, and a buyout path after year five.
EnFin
A focused solar PPA platform with clean terms and competitive rates. Designed for homeowners who want a simple $0-down agreement without added complexity.
GoodLeap vs. LightReach vs. EnFin — Side by Side
Key differences that affect your monthly payment, long-term savings, and flexibility.
| Factor | LightReach | GoodLeap | EnFin |
|---|---|---|---|
| Payment Structure | Per kWh produced | Per kWh produced | Per kWh produced |
| Rate Range (CA) | $0.17–$0.25/kWh | $0.18–$0.27/kWh | $0.17–$0.26/kWh |
| Battery Option | Included — same PPA | Optional add-on cost | Not available |
| Rate Escalator | 0%–3.5% | 0%–3.5% | 0%–3.5% |
| Contract Term | 25 years | 20–25 years | 20–25 years |
| Buyout Option | Yes | Yes — after year 5 | Yes |
| Transfer on Home Sale | Transferable | Transferable | Transferable |
| Maintenance & Monitoring | Included | Included | Included |
| 48E ITC Pass-Through | ✓ Yes | ✓ Yes | ✓ Yes |
| Best Utility Match | PG&E · SCE (NEM 3.0) | All CA utilities | All CA utilities |
| Best For | Solar + battery, NEM 3.0 | Established platform, buyout | Clean terms, higher credit |
Rate ranges are estimates based on California market data as of May 2026. Your exact rate is confirmed at time of proposal and depends on roof orientation, system size, utility territory, and credit profile. No credit pull required to get your estimate. Sources: EnergySage · Palmetto/LightReach · provider proposal data.
Want to Own Your System?
The Prepaid Lease Is the Ownership Path
A PPA is the simplest path to lower bills — but if you want to own the system and build long-term equity, the Prepaid Lease delivers that. You pay one discounted upfront cost (30% off via the 48E ITC pass-through), the provider handles installation and maintains the system, and you own it outright after 5 years. No ongoing per-kWh payments. No escalator. Highest long-term ROI of any $0-ownership structure.
Rate Comparison — 2026
What Does a Solar PPA Cost vs. Your Utility in California?
California has some of the highest residential electricity rates in the country. A solar PPA locks your per-kWh rate at $0.17–$0.27 — well below what PG&E, SCE, or SDG&E charge today. The savings are strongest in SDG&E and PG&E territory. SMUD customers see more modest savings due to SMUD's lower baseline rates.
California Solar PPA Rate vs. Utility — Full Breakdown
Based on 2026 residential tiered and TOU rate schedules. PPA rate confirmed at time of proposal.
| Utility | Avg. Residential Rate | PPA Rate Range | Est. Annual Savings* | Best PPA Option |
|---|---|---|---|---|
| SDG&E | $0.48–$0.65/kWh | $0.17–$0.27/kWh | $1,200–$1,800/yr | LightReach Solar+Battery — strongest under NEM 3.0 |
| PG&E | $0.47–$0.63/kWh | $0.17–$0.27/kWh | $1,100–$1,600/yr | LightReach Solar+Battery · GoodLeap · EnFin |
| SCE | $0.42–$0.58/kWh | $0.17–$0.27/kWh | $900–$1,400/yr | LightReach Solar+Battery · GoodLeap · EnFin |
| Pioneer Community Energy | $0.35–$0.52/kWh | $0.17–$0.27/kWh | $700–$1,100/yr | GoodLeap · EnFin · GridGen also available |
| SMUD | $0.12–$0.16/kWh | $0.17–$0.27/kWh | Limited — see note | Prepaid Lease + SMUD battery rebate recommended instead |
*Annual savings estimates based on average California home usage of 6,500–8,000 kWh/year. Actual savings depend on system size, roof orientation, shading, and PPA rate confirmed at proposal. SMUD rates sourced from smud.org. PG&E rates from PG&E Rate Schedule E-TOU-C. SCE rates from SCE TOU-D-PRIME. SDG&E rates from SDG&E DR-SES schedule.
⚠️ Understand the Rate Escalator Before You Sign
Most PPA contracts include an annual escalator — a small percentage increase in your per-kWh rate each year. In 2026, escalators range from 0% to 3.5% annually depending on the provider and your credit profile. A 3.5% escalator on a $0.20/kWh starting rate reaches $0.28/kWh by year 10. Compare that to your utility's historical rate increases — PG&E rates have risen an average of 6–8% annually — and most PPA escalators still save money long-term. But always confirm your escalator before signing and calculate the 10-year and 25-year totals.
✓ How to Get the Best PPA Escalator Rate
Higher credit scores typically qualify for lower starting rates and lower escalators. A 0% fixed-rate PPA provides the most predictable long-term savings — your rate never changes regardless of what utilities do. A lower starting rate with a 1%–2% escalator can deliver stronger year-one savings if you plan to sell within 10 years, since the contract transfers to the new homeowner. We compare escalator scenarios side by side in every estimate so you see the full picture before committing.
See Your Exact PPA Rate for Your Home and Utility
No credit pull to get started. We run the numbers for PG&E, SCE, SDG&E, Pioneer, and SMUD — and show all options side by side.
Common Questions
Solar PPA Questions — Answered
Everything California homeowners ask before signing a PPA — answered straight, with no sales spin.
A solar Power Purchase Agreement (PPA) is a contract where a third-party company installs solar panels on your roof at no cost to you. You agree to buy the electricity the system produces at a fixed per-kWh rate — set below your utility's current price. The provider owns the system and handles all maintenance. In California, PPAs are available to PG&E, SCE, SDG&E, and Pioneer Community Energy customers. SMUD customers typically see better returns from the prepaid lease due to SMUD's lower baseline rates.
California solar PPA rates in 2026 typically range from $0.17 to $0.27 per kWh depending on the provider, utility territory, system size, and your credit profile. PG&E and SDG&E customers with rates at $0.47–$0.65/kWh can expect the strongest savings — often $1,000–$1,800 per year in year one. Your exact rate is confirmed at time of proposal. No credit pull is required to get your estimate.
The federal Section 25D homeowner tax credit expired December 31, 2025 — so homeowners who buy or finance a system no longer receive the 30% credit directly. However, PPA providers (GoodLeap, LightReach, EnFin) are businesses that qualify for the commercial 48E Investment Tax Credit, which remains available through 2027. They claim this credit and pass the savings to you through a lower per-kWh rate. No tax liability is required on your part.
All three providers we work with — GoodLeap, LightReach, and EnFin — offer transferable agreements. When you sell your home, the PPA transfers to the new homeowner, who takes over the remaining contract at your locked rate. Some buyers view a below-market solar rate as a selling advantage. Alternatively, most agreements include a buyout option so you can purchase the system at fair market value before selling if you prefer a clean title transfer.
A PPA escalator clause is a small annual increase in your per-kWh rate — typically 0% to 3.5% per year in 2026. A 0% fixed rate means your PPA price never changes. A 3.5% escalator on a $0.20/kWh starting rate reaches approximately $0.28/kWh by year 10. Compare that to PG&E's historical rate increase of 6–8% annually — most PPA escalators still save money long-term. Always confirm your escalator before signing and ask us to model the 10-year and 25-year cost comparison.
With a solar PPA, you pay per kilowatt-hour of electricity the system produces — so your bill varies with production. With a solar lease, you pay a fixed monthly fee to use the system regardless of how much it produces. Both are $0-down, third-party-owned structures where the provider handles maintenance. PPAs offer more savings upside in high-production months; leases offer payment predictability. The prepaid lease is a third option — you pay a discounted lump sum upfront and own the system after 5 years — offering the highest long-term ROI.
The best California PPA provider depends on your utility and whether you want battery storage. LightReach is the strongest option for PG&E, SCE, and SDG&E customers who want solar and battery under one agreement — critical for maximizing savings under NEM 3.0. GoodLeap is the best-established platform with a clear buyout path after year five. EnFin offers competitive rates for higher credit score homeowners who want a clean solar-only agreement. We compare all three for every homeowner and recommend the best fit — no obligation.
The PPA provider — GoodLeap, LightReach, or EnFin — owns the system and is responsible for all monitoring, maintenance, and repairs for the full contract term (20–25 years). If a panel underperforms or inverter fails, they fix it at no cost to you. This is one of the key advantages of a PPA over purchasing: you carry zero equipment risk for the life of the agreement. Production guarantees are typically included — if the system underperforms, the provider compensates you.
Yes — SDG&E customers typically see the strongest PPA savings of any California utility. SDG&E residential rates run $0.48–$0.65 per kWh in 2026, the highest in the state. A PPA locking in at $0.17–$0.27/kWh delivers estimated year-one savings of $1,200–$1,800 for an average San Diego household. LightReach's solar + battery PPA is particularly strong for SDG&E customers on time-of-use rates, where battery storage maximizes self-consumption during expensive evening peak hours. See solar programs available in San Diego County →
Most PPA agreements include a buyout option — typically after year 5 or year 6 — allowing you to purchase the system at fair market value and gain full ownership. GoodLeap is particularly clear about this path. However, if ownership is your primary goal from day one, the prepaid lease is the stronger choice: you pay one discounted upfront cost (30% off via the 48E ITC pass-through), the provider installs and maintains it, and you own the system outright after 5 years with no further payments. See all California solar financing options →
Still Have Questions? Let's Run Your Numbers.
60 seconds. No credit pull. We compare PPA vs. prepaid lease for your home, utility, and bill — side by side.