If you’ve been following solar policy, you’ve likely heard that the 30% residential solar tax credit will be phased out after December 31, 2025, following the passage of the “One Big, Beautiful Bill” (OBBB1). For years, this federal incentive helped reduce the cost of going solar for homeowners across the country.
At Exact Solar, we knew this shift would create new barriers for homeowners who still wanted the long-term savings and stability that solar can offer. Not everyone is in a position to pay for their system in cash or qualify for financing, and we believe solar should be accessible regardless of your financial situation. Following this news, it became more important than ever for our team to create a fair and affordable option for homeowners who still want the benefits of solar.
Even without the tax credit, solar continues to make financial sense. Electricity prices have risen sharply in recent years, consistently outpacing inflation and placing a growing burden on household budgets. Today, it costs about 30 percent more to power a home than it did just five years ago. In June 2025, utility rates in Pennsylvania and New Jersey rose nearly 20 percent, with additional increases already on the way for 2026.
Going solar allows you to opt out of the endless cycle of rising energy bills. Instead of facing unpredictable rate hikes year after year, you can lock in long-term savings and stabilize your energy costs, putting that money toward something more meaningful than your electric bill.
Still, we recognize that the cost of solar remains a challenge for many families. Some homeowners are not in a position to take on ownership, even with financing. That’s why we set out to build something different, unlike anything else available in the market today.
Working together with other locally owned solar companies across the country, we created a new option for homeowners to go solar. Our Power Purchase Agreement (PPA) gives more people access to clean, reliable energy with a locked-in electricity rate that never increases.
Instead of paying your utility for power that gets more expensive over time, you pay a stable rate for solar electricity generated right on your roof. That rate stays the same for 25 years, giving you the peace of mind that comes from knowing exactly what you’ll pay for your energy month after month and year after year.
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What is a Solar Power Purchase Agreement (PPA)?
A Power Purchase Agreement (PPA) is a simple and affordable way to go solar with no upfront cost. Instead of buying or financing your system, you agree to purchase the electricity it produces at a set price per kilowatt-hour (kWh). The system is installed on your home, but you do not own it; the provider does. In return, you get predictable electricity at a rate that is lower than your utility’s, and the provider takes responsibility for installation, monitoring, and maintenance.
In other words, a PPA lets you lock in lower energy costs without the cost or responsibility of owning solar equipment.
If you don’t already have solar, you’re effectively in a PPA with your utility company. When you moved in and activated service, you agreed to buy power from them at rates they can raise whenever they want, with no end in sight. You’re paying for electricity generated by power plants miles away, often burning fossil fuels, and delivered to your home at an ever-increasing cost. A solar PPA changes that.
With Exact Solar’s PPA, you’re locking in a stable, lower rate for clean energy produced right on your roof. Your solar rate will stay the same for 25 years, while utility rates continue to rise around you. There are no surprise fees, no annual increases, and no unexpected costs. You simply pay for the solar electricity your system produces at a predictable, affordable rate.
Unlike typical PPA options, Exact Solar’s PPA has no escalator. An escalator is a clause that increases your rate each year by a fixed percentage. Escalators are extremely common in the industry, and they often leave homeowners paying more than they expected, and in many cases, more than they would have paid the utility.
For many years, Exact Solar chose not to offer a PPA or lease option at all, because the available models didn’t meet our standards for transparency and fairness. That changed when we partnered with fellow Amicus members across the country to negotiate a better option, one that puts homeowners first.
With Exact Solar’s PPA:
- You pay nothing up front
- You get a locked-in rate that never increases
- You avoid the responsibility of ownership
- You gain the peace of mind that your electricity cost is stable for the next 25 years
Behind the scenes, the PPA provider, LightReach, owns and monitors your system to ensure it performs as promised. Exact Solar provides local service and support for the entire term, handling any maintenance or repairs as needed.
Why Exact Solar Created This PPA
Exact Solar is a locally owned solar installation company, serving Pennsylvania, New Jersey, and Delaware for over 20 years. Since day one, our mission has been to make solar affordable and accessible for our community. We have built a reputation on honesty, transparency, and always putting our customers first.
Exact Solar is part of a highly-regarded national solar cooperative called Amicus, a national network of 90 mission-aligned, independent solar companies that work together to raise standards, share best practices, and advocate for renewable energy policy. Like Exact Solar, which has been in business locally for over 20 years now, the average age of each member Amicus company is 20 years. We are the collective grass-roots installers all around the country trying to do solar the right way, with a high level of service and a strong customer focus. Amicus itself is a B Corp, and Exact Solar is proud to be a part of the Amicus network.
For more than 20 years, Exact Solar has helped homeowners go solar through two main options: paying in cash or financing the system. Those paths have worked well for many of our customers, and we’ve seen firsthand how much value solar can bring in terms of savings, stability, and long-term peace of mind.
With recent shifts in energy policy and the loss of the federal solar tax credit, it became more important than ever to create a fair and affordable option for homeowners who still want the benefits of solar. At the same time, electricity rates across the country are rapidly increasing, making stable, predictable pricing more valuable than ever. Amicus members came together to negotiate a straightforward, ethical PPA option with LightReach. Our goal was simple: put the homeowner first. That meant insisting on clear language, fair protections, and a truly low, fixed kWh rate with no escalator. We chose LightReach because they agreed to those strict terms and committed to operating with transparency, unlike most typical PPA options on the market that include hidden fees, escalating rates, or confusing fine print.
How is This PPA Possible?
When homeowners see their solar PPA pricing for the first time, it often raises questions because they are surprised by how much it lowers their rate. We’ve heard people say, “This seems too good to be true.” That’s a reasonable reaction, especially in an industry where not every offer is as clear as it should be.
The truth is, this PPA works because of how the system is structured behind the scenes. There’s a straightforward financial foundation that makes the low, fixed rate possible, and it starts with how the federal solar incentives are applied.
For the last several years, there have been two types of federal solar tax credits:
- One for homeowners who purchase their systems (the residential credit)
- One for commercial entities that own and install systems (the commercial credit)
The residential tax credit begins phasing out after December 31, 2025. That’s the one most people know as the 30% incentive. However, the commercial tax credit remains in place through 2027 and offers additional benefits that are not available to homeowners, such as accelerated depreciation. In Pennsylvania and New Jersey, they can also claim SRECS on behalf of the homeowner.
When you go solar through Exact Solar’s PPA, our partner LightReach owns the system and is able to access those commercial tax benefits. LightReach claims the 30% credit, applies depreciation rules to reduce costs further, and claims eligible SRECs on your behalf.
This structure allows us to pass those savings directly to you in the form of a lower, fixed electricity rate. Even though you are not the one claiming the tax credit, you still benefit from the incentives that make solar more affordable.
The result is a stable, predictable energy cost for your home, without any upfront expense or surprise increases. Because Exact Solar remains your local solar partner, you have the support of a team that knows your home, your system, and your community.
How Exact Solar’s PPA Works
Once you schedule your free consultation, here’s exactly what to expect:
1. Custom System Design
We begin by reviewing your home’s electric usage over the past 12 months and evaluating your roof to determine the right system size. Then we present a clear, no-pressure proposal showing your fixed solar rate and projected savings compared to your current utility bill. This consultation is completely free and comes with no obligation.
2. Simple Agreement
If the numbers make sense for you, you’ll sign an agreement to purchase the electricity your system produces at a fixed rate per kilowatt-hour. You are not buying equipment, and there is no upfront cost. The rate you agree to will never increase for the 25-year term.
3. Installation and Approvals
Once you move forward, Exact Solar handles everything, including permits, utility paperwork, inspections, and the full installation. Our local, in-house crews complete the work, so you never deal with out-of-state subcontractors. At this point, you still haven’t paid for anything.
4. Start Paying Once the System Is On
After installation is complete and your system receives Permission to Operate (PTO) from the utility, it’s officially turned on. Your solar PPA payments begin 30 days after PTO, so you only start paying once the system is up and running and generating electricity for your home.
5. Monitoring and Maintenance
Throughout the term, LightReach owns and monitors your system to ensure it’s performing as expected. Exact Solar remains your local service partner, handling any on-site maintenance or repairs if needed. If the system produces less than 90% of what it’s designed to, you receive credits against your bill under the PPA’s production guarantee. If any equipment ever fails, LightReach will process the warranty claim, and we’ll schedule a time to replace the part.
Common Questions Homeowners Ask About Our PPA
1. How does a solar PPA work, and what’s included?
A Power Purchase Agreement (PPA) is an arrangement where a solar provider installs and owns a system on your roof, and you agree to purchase the electricity it generates at a fixed rate. You don’t buy the equipment; you simply buy the power it produces. Exact Solar’s PPA includes:
- A fixed electricity rate for 25 years
- A production guarantee
- Full system monitoring
- Warranty-backed maintenance and service, handled locally by our team
2. What are the options to purchase the system under a PPA?
You’ll have three opportunities to purchase the system:
- After the 5th anniversary of interconnection (with 60 days’ notice)
- If you sell your home during the agreement
- At the end of the 25-year term
The purchase price is based on the system’s fair market value at that time, as determined by a third-party assessor. For tax compliance reasons, we’re unable to discuss the potential future purchase price in advance.
3. What’s the maximum system cost allowed for a PPA?
The maximum system cost for a PPA through LightReach is $150,000. This applies to all system types, including ground-mounted systems, and is not dependent on system size.
4. Can I still get any tax benefits from going solar?
Not directly. Under a PPA, you won’t claim the federal tax credit yourself. However, the system owner, LightReach, does apply the commercial solar tax credit and other incentives to reduce the overall cost of the system. Those savings are passed along to you in the form of a lower electricity rate.
5. What happens if I sell my home during the PPA term?
In most cases, the PPA can transfer to the new homeowner. The buyer must have a credit score of at least 660 to qualify. If they’ve secured a mortgage, they likely meet this requirement. Most buyers see the solar system as an extra perk, since it offers long-term energy savings and cleaner power already built into the home.
6. What happens at the end of the 25-year term?
As your agreement nears its end, you’ll have a few options:
- Extend the PPA agreement
- Purchase the system at fair market value
- Request that the system be removed at no cost to you
LightReach will walk you through these options well in advance, so you can make the choice that works best for you.
7. Is this the same as those “free solar” ads I see online?
No. Solar is not free, and any company that claims it is should be avoided. The government does not give away free solar systems, and ads that suggest otherwise are often using misleading language to push confusing contracts. These offers usually come with hidden escalators, confusing terms, or pressure-filled sales tactics. Homeowners expecting a no-cost solution often end up locked into agreements that cost more over time.
With Exact Solar’s PPA, you are still paying for electricity, but instead of buying it from your utility at unpredictable rates, you allow the provider to install a solar system on your roof, and you purchase the power it produces at a lower, fixed rate that never increases for the full term of the agreement.
Our PPA was designed to be clear, fair, and free of surprises. There is no upfront cost, no escalators, and it’s backed by Exact Solar and the Amicus Solar Cooperative, a national network of mission-driven, independently owned solar companies that share a commitment to doing solar the right way.
8. Will this hurt my credit score?
No. A solar PPA is not reported as debt and does not affect your debt-to-income ratio. To qualify, we use a soft credit check, not a hard pull. That means it won’t appear on your credit report or impact your score the way a traditional loan application would.
To learn more, visit our PPA page to explore the full list of Frequently Asked Questions.
Find Out If a PPA Makes Sense for You
If you live in Pennsylvania or New Jersey and are exploring whether a solar PPA, or any payment option, is right for you, the best place to start is with a free solar estimate.
We’ll review your electricity usage over the past 12 months and your current utility rates, then walk you through a side-by-side comparison of cash, financing, and PPA options. You’ll see exactly how each option works and what the savings will look like over time.
Even with recent policy changes and the phase-out of the residential tax credit, going solar is still one of the most effective ways to take control of rising energy costs and power your home with clean, reliable energy.