PPAs are offered by a number of financing providers such as SunPower, Spruce, SunRun, Sunnova and One Roof Energy as a way for homeowners to enjoy the benefits of going solar, without having to worry about the upfront cost, or the operations and maintenance issues associated with solar ownership.
The PPA provider agrees to pay a specific rate for each kilowatt hour that the homeowner's solar project generates. Since in a PPA the homeowner does not own the system, the input parameters are limited. Here is how to model it:
- Go to the Database section of your account and select Financing Products.
- Click Add Financing Product. Give your product a descriptive name and click Create.
- Click Edit to designate the financing product for Residential or Commercial and change the Financing Type to PPA. Click Save.
- Input the Upfront Payment (if applicable), the Rate, and the Escalation Rate. We highly recommend that you lock fields that will not change between different designs. This will save your team time and reduce errors.
To learn more about modeling PPAs please review this video: Creating Financing Products.