Solar PPAs and Third-Party Ownership (TPO): A 2026 Homeowner's Guide
A solar power purchase agreement, or PPA, is one of the most popular ways for homeowners to add solar and battery storage with no money down. With a PPA, a solar company owns the system and you pay only for the power it produces, usually at a rate lower than what you pay your utility today.
This page explains how PPAs and third-party ownership work, how they compare to a loan or a lease, when a PPA makes the most sense, and the PPA options Home Pro offers in Sunnyvale, Mountain View, Los Altos, Palo Alto, Santa Clara, Redwood City, San Jose, and nearby cities.
What Is a Solar Power Purchase Agreement (PPA)?
A solar PPA is a simple agreement where a solar provider installs and owns the system, and you pay only for the power it makes. You do not buy the equipment. You buy the electricity the panels produce at a set, predictable rate.
How a PPA Works
- Zero upfront cost
- The PPA provider owns and maintains the system
- You pay a fixed or levelized rate per kilowatt-hour
- The system is installed, monitored, and maintained for you
- You get lower, more predictable energy costs
PPAs are popular because they remove the two biggest obstacles to going solar: the upfront cost and the long-term responsibility of owning equipment.
What Is Third-Party Ownership (TPO)?
TPO is any solar arrangement where a company owns the equipment instead of the homeowner. Both PPAs and solar leases are forms of TPO. The owner handles the install, the monitoring, the repairs, and any replacements for the life of the agreement.
PPA vs Solar Lease
A PPA charges you for the power the system produces. A lease charges a fixed monthly amount no matter how much power the panels make. Both keep ownership with a third party and both include maintenance, but a PPA ties your cost to actual production, which most homeowners find more flexible.
Why PPAs Have Become the Preferred Option in 2026
Today's solar systems include more parts than ever, including batteries. Those parts can be expensive to maintain and replace. More homeowners are choosing PPAs because of the protection they offer.
No Equipment Ownership Risk
You avoid the cost of repairs, inverter failures, and battery replacements. The system owner covers all of it.
No Upfront Payment
Most PPAs require zero money down. There is no deposit and nothing due before the system turns on.
Predictable Energy Cost
You know what you will pay for power. No surprises from PG&E rate hikes.
Monitoring and Repairs Included
The provider tracks system performance and handles every service call.
Battery Replacement Included With the Enfin PPA
This is one of the biggest homeowner benefits. Batteries often need replacement within ten to twelve years, and replacement can cost more than $15,000 if you own the system. The Qcells Enfin PPA covers replacements for the full term.
How the 2026 Tax Credit Change Affects PPAs
The 30% residential solar tax credit (Section 25D) ended on December 31, 2025 for homeowners who pay cash or use a loan. The commercial Investment Tax Credit (Section 48E) still applies to third-party owned PPA and lease systems through 2027.
Under a PPA, the system owner claims that commercial credit and passes the value back to you through a lower rate. You have no tax paperwork and no income requirement. This is the main reason a PPA payment in 2026 can come in lower than a typical solar loan payment. The PPA captures a tax benefit you can no longer claim on your own.
PPA vs Loan vs Lease: A Simple Comparison
Solar PPA
- Zero upfront cost
- No equipment responsibility
- Pay only for the power produced
- Full monitoring and maintenance included
- Battery replacement included with the Qcells Enfin PPA
- Lower risk and predictable cost
Solar Loan
- Homeowner owns the equipment
- You handle repairs and replacements yourself
- Upfront cost or financed monthly payments
- No homeowner tax credit on a 2026 purchase (Section 25D expired)
- Best for homeowners who want full ownership
Solar Lease
- Fixed monthly payment
- Third party owns the system
- Maintenance included
- Payment is not tied to actual production
- Less flexible than a PPA
| Feature | Solar PPA / Lease | Solar Loan | Prepaid PPA |
|---|---|---|---|
| Upfront cost | As little as $0 | Often required or financed | One upfront payment |
| Ownership | Third party | Homeowner | Third party |
| Repairs | Covered by installer | Homeowner pays | Covered by installer |
| Monitoring | Included | Homeowner handles | Included |
| Battery replacement | Varies by contract | Homeowner pays | Covered by warranty |
| 2026 tax credit | Captured by owner, value passed to you | None for homeowner | Captured by owner, applied upfront as a lower price |
| Best for | Predictable monthly savings, no equipment responsibility | Owning the system | Owning the system after 6 years |
When a PPA Makes the Most Sense
A PPA is a strong fit for homeowners who:
- Want solar with no upfront investment
- Prefer predictable monthly costs
- Want battery replacement protection
- Plan to stay in their home for several years
- Do not want the responsibility of owning equipment
- Are replacing a roof and adding solar at the same time
- Want protection from rising PG&E rates
When a Loan or Cash Purchase May Be Better
Owning the system may be the better choice if you:
- Prefer full ownership
- Plan to live in the home for a very long time
- Are comfortable managing repairs and replacements
- May add system expansions later
You can compare every option, including ownership, on our finance page.
Common Misconceptions About PPAs
"PPAs are more expensive."
Not usually. Once you factor in battery replacement and long-term maintenance, a PPA often costs less over time.
"I lose control of my roof."
You keep full control. You simply allow the provider access for repairs and monitoring.
"PPAs are hard to transfer when I sell."
Modern PPAs, including the Enfin program, are built to transfer cleanly at closing.
"I cannot add battery storage with a PPA."
The Enfin PPA includes battery storage and replacement for the full term.
How Battery Storage Fits Into a PPA
Battery storage used to be a major cost barrier. Under the Qcells Enfin PPA, the battery is included and replaced as needed. That makes a PPA one of the simplest ways to add backup power for outages in Sunnyvale, Mountain View, Palo Alto, Los Altos, Santa Clara, and nearby cities.
If you owned the battery, replacement alone can top $15,000. Under the PPA, that cost is not yours. Learn more on our battery backup page.
Your PPA Options Through Home Pro
Home Pro offers more than one PPA path so you can match the program to your home and budget. We compare all of them against a loan or cash purchase before you decide.
Qcells Enfin PPA
The Enfin PPA is our most popular zero-down program. It includes the panels, the battery, monitoring, all repairs, and battery replacement for the full 25-year term, with a production guarantee. See the full details on our Enfin Solar PPA page.
Prepaid Solar PPA
A prepaid PPA lets you pay once up front instead of monthly, which captures more of the savings and replaces the lost homeowner tax credit. Prepaid options run through Solar Tech. See how it works on our prepaid solar PPA page.
Monthly PPA and Lease Options
If you prefer a monthly structure, we offer monthly PPA and lease options with levelized or production-based billing. Compare them on our monthly PPA and lease page.
Our Installation Partners: Solar Tech and Axia by Qcells
Home Pro stays your single point of contact for the whole project. The solar install is completed by one of our certified partners.
Solar Tech
Solar Tech is one of California's most established solar installers. Solar Tech handles install, permitting, and monitoring, and offers prepaid PPA options as well as the Enfin PPA. See our Solar Tech partner page.
Axia by Qcells
Axia by Qcells is the installation network tied directly to Qcells. Axia delivers the Enfin PPA, solar leases, and standard financing, and typically uses Qcells panels and Qcells battery storage. See our Axia by Qcells page.
The Enfin PPA is available through both partners with the same contract, the same 25-year coverage, and the same performance guarantee. The choice usually comes down to scheduling and equipment preferences, and we walk through both in your free estimate.
Service Areas
We serve homeowners across two counties:
Santa Clara County: Sunnyvale, Mountain View, Los Altos, Los Altos Hills, Saratoga, Palo Alto, Cupertino, Santa Clara, San Jose
San Mateo County: Menlo Park, Redwood City, San Carlos, Belmont, Foster City, San Mateo
Why Work With Home Pro
Home Pro Roofing and Solar has served homeowners since 2006, with nearly 20 years of experience. We coordinate the full project so you get one point of contact, one coordinated project across the trades we deliver. Whether your PPA is installed through Solar Tech or Axia by Qcells, we handle the roof, the solar removal and reinstallation if needed, battery storage planning, and EV charger work.
Working with Home Pro on a PPA gives you:
- One point of contact, one coordinated project
- Your choice of Solar Tech or Axia by Qcells as the installer
- An honest comparison against prepaid PPA, monthly, loan, and cash options
- Roof inspection and replacement coordinated with the solar install if needed
- GAF Certified roofing work and clean solar panel removal and reinstall during a reroof
Related pages: Roofing, EV Chargers, Finance overview.
Frequently Asked Questions
What is a solar PPA?
A solar power purchase agreement, or PPA, is a deal where a solar company installs and owns the system on your roof, and you pay only for the power it makes. You do not buy the equipment. You buy the electricity at a set rate, usually lower than your utility rate.
Do I own the solar panels with a PPA?
No. With a PPA, the system owner keeps ownership of the panels, inverter, and battery. You own the power the system produces, not the hardware. That is what removes the cost and risk of repairs and replacements from you.
Is there really no upfront cost?
Yes. A PPA has zero down. There is no deposit and nothing due before the system turns on. Your first payment starts after the system is producing power.
How is a PPA different from a solar lease?
A PPA charges you for the power the system produces. A lease charges a fixed monthly amount no matter how much power the panels make. Both keep ownership with a third party and include maintenance, but a PPA ties your cost to actual production.
Can I still get the solar tax credit in 2026?
The 30% residential tax credit (Section 25D) ended on December 31, 2025 for homeowners who pay cash or use a loan. The commercial tax credit (Section 48E) still applies to third-party owned PPA and lease systems through 2027. With a PPA, the system owner claims that credit and passes the value back to you through a lower rate. You have no tax paperwork and no income requirement.
Does a PPA include battery storage and replacement?
It can. The Qcells Enfin PPA includes the battery and covers replacement for the full term. That matters because a battery can cost more than $15,000 to replace if you own it. Under the PPA, that cost is not yours.
What happens to my PPA if I sell my home?
The agreement transfers to the new owner. Modern PPAs, including the Enfin program, are built to transfer cleanly at closing. You can also arrange to buy out the system if the buyer prefers to own it.
Can I buy the system later?
Yes. Most PPAs let you buy the system at fair market value at set points in the contract. The price depends on the time left in the term and the system's value.
Which PPA options does Home Pro offer?
Home Pro offers the Qcells Enfin PPA, prepaid PPA options through Solar Tech, and monthly PPA and lease options. We compare all of them against a loan or cash purchase so you can pick what fits your home.
What cities does Home Pro serve?
We serve Sunnyvale, Mountain View, Los Altos, Los Altos Hills, Saratoga, Palo Alto, Cupertino, Santa Clara, and San Jose in Santa Clara County; Menlo Park, Redwood City, San Carlos, Belmont, and San Mateo in San Mateo County; and Fremont, Newark, and Union City in Alameda County.
Get a Free PPA Consultation
We can walk through how a PPA compares to your current electric bill, the Solar Tech vs Axia by Qcells choice, and how a PPA stacks up against a loan or cash purchase. Call (800) 650-3134 or request a free quote online.