Pay only for the power it actually produces

Instead of a flat monthly payment, your bill scales with actual production -- more sun, more power generated, and you pay for that power at the agreed rate. If the system underproduces in a given month, you pay less; there's no fixed minimum tied to a projection.

The provider owns, monitors, and maintains the equipment for the life of the agreement, typically 20-25 years.

Zero upfront cost, no maintenance responsibility, and a rate that's typically set below what the utility charges. The agreement is fully transferable if you sell the home.

You don't own the system and don't claim tax credits yourself -- the provider claims the federal business credit (Section 48E, in place through the end of 2027) and it is reflected in your per-kWh rate. Since the residential credit ended on December 31, 2025, third-party ownership is currently the only structure through which a federal credit reaches a residential solar deal. Some PPAs include a small annual rate escalation clause -- that's worth reading closely in the actual agreement rather than assuming, since terms vary by provider and contract.