Is this solar PPA a good deal? Duquesne Light / Pittsburgh area
I’m in the Pittsburgh area with Duquesne Light and was offered a Palmetto/LightReach solar PPA. I’m trying to figure out if this is actually a good deal or if I’m missing something.
Current situation:
My effective Duquesne Light rate is about $0.24/kWh based on my bill
Annual usage is around 11,882 kWh
The home is in the Pittsburgh/Duquesne Light market
This would be a third-party-owned solar system, not owned by me
PPA offer:
System size: 11.48 kW DC
Estimated year 1 production: 11,882 kWh
Starting PPA rate: $0.22/kWh
Year 1 payment: $217.83/month
Annual escalator: 2.99%
Term: 25 years
Year 25 rate: about $0.446/kWh
Year 25 payment: about $391.90/month
Total scheduled payments over 25 years: about $89k
No battery
No upfront install cost
Important contract details:
LightReach owns the system
I do not get the tax credits, rebates, SRECs, RECs, capacity rights, or other incentives
I would still receive a Duquesne bill for fixed charges, excess usage, or anything solar does not offset
The agreement can transfer to a buyer if I sell, but the buyer has to go through LightReach’s transfer/credit process
Buyout after year 5 appears to be based on fair market value, not a fixed buyout schedule
Prepayment exists, but I’m not sure that means I own the system
Production guarantee exists, but it does not appear to guarantee savings versus Duquesne
Why I’m considering it:
My current effective rate is around $0.24/kWh, so the PPA starts below what I’m paying now
Duquesne rates have gone up a lot over the last few years
The PPA escalator is 2.99%, so if Duquesne keeps rising faster than that, this could be a decent hedge
Since the homeowner federal solar tax credit is apparently no longer available for new residential systems placed in service after 2025, buying solar outright may be less attractive than it used to be
What worries me:
25-year obligation
2.99% escalator compounds hard over time
I don’t own the system
Selling/refinancing the home could be more complicated
If the true avoidable Duquesne rate is lower than $0.24/kWh because some of that is fixed charges, the savings may be overstated
Buyout/prepayment terms seem unclear
I don’t know if I should push for a 0% escalator, a lower starting rate, or walk away
Questions:
For people in PA/Duquesne territory, does $0.22/kWh with a 2.99% escalator seem reasonable for a PPA?
How much should I worry about the home-sale/transfer issue?
Should I ask for 0%, 1.9%, and 2.99% escalator options to compare?
Is there a better way to calculate my true avoidable rate from Duquesne?
Would you sign this, counter, or walk away?
What specific contract terms should I ask them to clarify before signing?
Appreciate any advice, especially from people familiar with Pennsylvania solar PPAs, Duquesne Light, or selling a house with a solar PPA attached.