I am nearing 3 years into a 20 year PPA contract. My price per kWh started of at .159 (or 15.9 cents) per kWh. I calculated the 2.9% annual increase all the way to year 20, and it comes out to .274 (or 27.4 cents) per kWh at the end of the contract. In my case, I calculated my entire year of 2016 kWh usage in regular grid electricity and the total I paid for the year. That kWh rate - in 2016 - was .283 (or 28.3 cents) per kWh. So, in my case, even at the end of my contract, the rate will never reach that of 2016. And I expect the grid electricity will rise between now and 2037! Of interest, I don't pay directly to the grid, although I'm still tied to the grid. My excess electricity is sold back to the grid by net-metering. I live in a state where net-metering is very consumer friendly. There is no cap to how much you can sell back to the grid. When the grid raises their rates, they have to credit my account accordingly. The more they charge, the more they have to pay in credits. So, in short, according to my calculations, I will ALWAYS pay less to the solar provider per kWh than I will to the grid, and as time goes on, will likely even make more in the way of credits from net-metering.
I always recommend the PPA options, especially here in California. Historically you can look at Edison‘s increases in the past 10 years alone they’ve been 80% plus now compare that to the new escalator of 3.5%. It’s a big difference to make it even better. Edison is actually proposing an increase of 20% plus by the end of 2025 on top of that, I’m already giving my homeowners more power than what they’re already using. This leads to them getting credits back from Edison getting paid for their power To make it even better... They get 25 year warranties and I can throw in a roof with a 10 year warranty. now I know not everybody does this, but I even help out homeowners if they are backed up on their bills. I love this job. Find yourself who is ethical and hear him out.
If you purchase your own panels, you’re not gonna have any warranty unless the installer has you also purchase a warranty. Considering that you’re already starting off homeowners at less than 20 to 30 to maybe even 40% of what there are paying at date the escalator is not even a problem. So yes go with a PPA if you really want to own them there’s also a buy out option.
Some guy knocked on my door and I was ready to ask him to leave but he introduced me to this solar PPA so I heard him out and I like the idea, especially since I don’t qualify for the tax credits. So I asked him to come back with his designs engineer and we’ll go over things next week. And I gave him a cup of cool water since the poor guy is going door to door in 99F weather 😆 🥵
@@zerotohero7756 no I didn’t, after doing some more research and just the fact that I don’t really own them makes me think twice about what kinds of problems I’d be facing if there was an issue and I was forced to upgrade or remove them. I’d rather get my own panels and pay for them.
Hahahah that’s hilarious youre a looky loo, you dont want to do the loan because u don’t get the tax credit but you also dont want to do the ppa since u dont own them youre stuck in analysis paralysis and are the average low iq consumer being taken advantage of by the power company
Very informative! So, to be clear is it safe to say that there is never a fixed payment per month with a PPA due to the fluctuations based on energy generated? Thanks for this clarification and taking the time out to create for the masses.
But is the escalation compounded over 20 years? Does this cover all transmission and supply costs? Natural gas prices have been falling significantly for 15 years even though power prices rise because of network and supply costs. This puts a lot of risk on the PPA holder. For example, a 3% escalator will mean that in the 20th year, the price of power will have nearly doubled.
The escalation is based on the current rate you are paying. Next years increase will not be based on 3% of the original PPA, but the new rate with the 3% added, and so on and so on. Sales people traditionally tote a Utility Rate increase of 5% per year. But depending where you live, like I do in PA, you will not be saving any money going with a PPA. You will pay more. Utilities rates have gone down, and third part suppliers are abundant and competitive. My electric rates are lower now than they were 5 years ago, while Solar PPA's have increased 3% each year.
Well with I always use a PPA for my home owners. I recommend it. Especially here in California. The past 10 years California has gone up 80+%. I give them more electricity than what they are using so that if they plan on adding anything to their home they have enough electricity. There’s no lien, they can transfer over to new owner. Our escalator has gone up 3.5% from the 2% but considering that Edison is proposing an increase to of over 20% within the next year I’m saving homeowners money. To begin with I’m already setting them up to pay 20-30% less off the line. On top of that giving them roofs. Find yourself an ethical guy and hear him out. I’ve helped home owners in distressed situations and even paid their backed up balances for them. I love this job.
I am nearing 3 years into a 20 year PPA contract. My price per kWh started of at .159 (or 15.9 cents) per kWh. I calculated the 2.9% annual increase all the way to year 20, and it comes out to .274 (or 27.4 cents) per kWh at the end of the contract. In my case, I calculated my entire year of 2016 kWh usage in regular grid electricity and the total I paid for the year. That kWh rate - in 2016 - was .283 (or 28.3 cents) per kWh. So, in my case, even at the end of my contract, the rate will never reach that of 2016. And I expect the grid electricity will rise between now and 2037!
Of interest, I don't pay directly to the grid, although I'm still tied to the grid. My excess electricity is sold back to the grid by net-metering. I live in a state where net-metering is very consumer friendly. There is no cap to how much you can sell back to the grid. When the grid raises their rates, they have to credit my account accordingly. The more they charge, the more they have to pay in credits.
So, in short, according to my calculations, I will ALWAYS pay less to the solar provider per kWh than I will to the grid, and as time goes on, will likely even make more in the way of credits from net-metering.
That's your State, not all States make sense and can cost you more, PA for sure is one.
O😅
The best video I've seen explaining the PPA. I've sent this link to all my potential leads. Thank you for this!
I always recommend the PPA options, especially here in California. Historically you can look at Edison‘s increases in the past 10 years alone they’ve been 80% plus now compare that to the new escalator of 3.5%. It’s a big difference to make it even better. Edison is actually proposing an increase of 20% plus by the end of 2025 on top of that, I’m already giving my homeowners more power than what they’re already using. This leads to them getting credits back from Edison getting paid for their power To make it even better... They get 25 year warranties and I can throw in a roof with a 10 year warranty. now I know not everybody does this, but I even help out homeowners if they are backed up on their bills. I love this job. Find yourself who is ethical and hear him out.
If you purchase your own panels, you’re not gonna have any warranty unless the installer has you also purchase a warranty. Considering that you’re already starting off homeowners at less than 20 to 30 to maybe even 40% of what there are paying at date the escalator is not even a problem. So yes go with a PPA if you really want to own them there’s also a buy out option.
SunRun?
Some guy knocked on my door and I was ready to ask him to leave but he introduced me to this solar PPA so I heard him out and I like the idea, especially since I don’t qualify for the tax credits.
So I asked him to come back with his designs engineer and we’ll go over things next week. And I gave him a cup of cool water since the poor guy is going door to door in 99F weather 😆
🥵
Did you go with it?
@@zerotohero7756 no I didn’t, after doing some more research and just the fact that I don’t really own them makes me think twice about what kinds of problems I’d be facing if there was an issue and I was forced to upgrade or remove them.
I’d rather get my own panels and pay for them.
Hey ill go knock your door and sell you panels
Hahahah that’s hilarious youre a looky loo, you dont want to do the loan because u don’t get the tax credit but you also dont want to do the ppa since u dont own them youre stuck in analysis paralysis and are the average low iq consumer being taken advantage of by the power company
Best explanation I've seen so far . Great video
Very informative! So, to be clear is it safe to say that there is never a fixed payment per month with a PPA due to the fluctuations based on energy generated? Thanks for this clarification and taking the time out to create for the masses.
There can be with a 0% escalator.
Excellent-thank you!
Beautiful
if the IPP modifies the proposed istall value.will it require any changes in terms and and warrenty for rebidding?
But is the escalation compounded over 20 years? Does this cover all transmission and supply costs? Natural gas prices have been falling significantly for 15 years even though power prices rise because of network and supply costs. This puts a lot of risk on the PPA holder. For example, a 3% escalator will mean that in the 20th year, the price of power will have nearly doubled.
The escalation is based on the current rate you are paying. Next years increase will not be based on 3% of the original PPA, but the new rate with the 3% added, and so on and so on. Sales people traditionally tote a Utility Rate increase of 5% per year. But depending where you live, like I do in PA, you will not be saving any money going with a PPA. You will pay more. Utilities rates have gone down, and third part suppliers are abundant and competitive. My electric rates are lower now than they were 5 years ago, while Solar PPA's have increased 3% each year.
Well with I always use a PPA for my home owners. I recommend it. Especially here in California. The past 10 years California has gone up 80+%. I give them more electricity than what they are using so that if they plan on adding anything to their home they have enough electricity. There’s no lien, they can transfer over to new owner. Our escalator has gone up 3.5% from the 2% but considering that Edison is proposing an increase to of over 20% within the next year I’m saving homeowners money. To begin with I’m already setting them up to pay 20-30% less off the line. On top of that giving them roofs. Find yourself an ethical guy and hear him out. I’ve helped home owners in distressed situations and even paid their backed up balances for them. I love this job.
It’s always different I work for a company that does a 0.0 cent ppl and a 0% rate escalator
forgot the true up cost
Hey I think someone texted you at 2:31