How to review a $0-down solar lease or PPA in 7 steps

In a previous post, we discussed the merits and challenges associated with $0‑Down Leases and Power Purchase Agreements (PPAs). However, parsing through the details of a lease offer requires knowing what to look for. In this follow up, we provide useful tips for successfully navigating a lease or PPA agreement to be sure that there are no surprises. To keep it simple, we broke it down to 7 steps.

1. Contract type & price path: Not all leases and Power Purchase Agreements (PPAs) are fixed. Some include annual escalators. Escalators can still make sense, especially if your utility rates historically rise faster, but they're not the same as a freeze (see Figure 1). Understand the starting price per kWh (PPA) or monthly fee (lease). If escalating, clarify the annual % increase and projected bill impact in years 1, 5, 10, 20.
2. Production modeling & guarantees: If your load calculation (how much electricity you actually use) is wrong, you may save less than expected. This is also true if your system production is optimistic. Verify how production is tracked, ask if there is a production guarantee and get clarification on how production shortfalls are compensated.
3. Term, fees, and obligations: Understand your contract length (commonly 20–25 years), early buyout schedule, transfer terms if you sell the home, renewal options, site access, lien/fixture filings, and any roof work requirements.
4. Maintenance, monitoring, and warranties: Clarify who fixes what, how quickly, and at whose cost.
5. Incentives & ownership: With leases/PPAs, the provider typically claims tax credits and incentives. Confirm how that benefit is passed to you (it should be reflected in pricing).
6. Utility programs & batteries: If you plan to add a battery or enroll in a utility program (e.g., demand response), confirm your contract allows it and how it affects savings.
7. Total value vs. the status quo: Have the provider show you a long‑term analysis of solar vs. staying 100% on grid power.

If you're like most people this could sound like a lot of work. Fortunately, Terawatt simplifies the due diligence process, potentially turning weeks of research into minutes.

• Apples‑to‑apples comparisons across fixed and escalating leases, PPAs, loans, and cash.
• Intuitive education and interactive charts and a built in AI energy consultant to answer questions 24/7.
• Human help on demand with a real energy coach when you want a second set of eyes.
• Verified load & production modeling using your actual bills plus high‑quality site data (shading, tilt, weather).
• Plain‑language contract highlights (escalators, buyouts, transfers, warranties) before you sign anything.
• Vetted providers & pricing transparency so you see how an offer stacks up to market norms.

This post is for general education and isn't legal, tax, or financial advice. Always review contracts and seek professional guidance for your specific situation.