Analyze a Power Purchase Agreement (PPA) comparing contracted solar rates against projected utility rates.
Input Parameters
Results
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Year 1 Savings
$
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25-Year Total Savings
$
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Crossover Year
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Avg Savings Rate
$/kWh
Note: PPAs require zero upfront cost. Typical PPA escalators are 1-3%/yr. Ensure PPA escalation is lower than utility escalation to maximize long-term savings.
Reference
PPA Rate(t) = PPA Start x (1+escalation)^t
Utility Rate(t) = Current Rate x (1+escalation)^t
Savings(t) = (Utility(t) - PPA(t)) x kWh x 0.995^t
Crossover = year when PPA rate > Utility rate