November 13, 2025
California homeowners face some of the highest electricity rates in the nation—and those rates are rising faster than inflation. With the 30% Federal Solar Tax Credit expiring at the end of 2025, homeowners in Marin, Sonoma, and Napa counties are searching for smarter, more flexible ways to go solar and take control of their energy costs.
While traditional
solar leases and Power Purchase Agreements (PPAs) have long been alternatives
to paying cash upfront, a new model is quickly gaining traction: the Prepaid Power Purchase Agreement (Prepaid PPA). This approach combines the
predictability of ownership with the benefits of tax incentives that are
typically reserved for commercial systems.
Understanding the Basics
What Is a Solar
Lease?
A solar lease
allows homeowners to use solar power without owning the system. The installer
or financier owns and maintains the panels, while the homeowner pays a fixed
monthly fee—like renting the system. Leases often run 20-25 years, and while
they can reduce upfront costs, they may complicate resale or refinancing.
What Is a Power
Purchase Agreement (PPA)?
A PPA works much
like a lease but charges homeowners based on the actual electricity produced.
For instance, if your solar system generates 800 kWh in a month, you pay for
that energy at your contracted rate—usually lower than PG&E's, but often
with annual rate escalations. PPAs can also be long-term commitments that tie
to the property.
How
a Prepaid PPA Works
A Prepaid
PPA gives you the benefits of solar ownership
without needing to claim the tax credit yourself. Here's how it works:
·
Single Upfront Payment
You make one upfront
payment for your system at a discounted rate. Many homeowners use a standard
loan for this portion.
·
Tax Benefits Passed to You
The finance provider
claims the Commercial Federal Tax Credit (available through 2027) and
system depreciation benefits—then passes those savings to you as a reduced
price.
·
No Monthly Solar Bills
After the initial payment, there are no ongoing payments for solar
energy.
·
Ownership Transfer
After six years, you have the opportunity to purchase the system at no cost, giving you full control and continued savings
for decades.
Why This Matters in California
Homeowners in Marin, Sonoma, and Napa counties pay some of the nation's highest rates under PG&E. Meanwhile, the Net Billing Tariff (NBT) has reduced the value of exporting excess energy to the grid. These two factors make predictable, long-term solar savings more valuable than ever.
Who
Should Consider a Prepaid PPA
A Prepaid solar
PPA can be a great fit for:
· Homeowners planning to stay in their home for at least six years Households with limited tax liability who still want to benefit from solar incentives
·
Homeowners who prefer ownership-style benefits without the
complexity of managing tax credits directly
For many Northern California homeowners, a Prepaid Power Purchase Agreement offers a smart, future-ready path to energy
independence. You lock in clean power at a 30% discount—even after federal
incentives end—without monthly bills, interest, or rising lease costs. Plus,
with easy transferability and a clear path to ownership, it adds resale appeal
and long-term stability in a time of escalating utility rates.
This opportunity is available for a limited time,
so now is the time to take advantage and secure your solar future!
Interested in a free proposal? Contact SolarCraft Today.
