To compare two solar quotes with different escalators, compare what you'll pay in total over the years you plan to stay, not the first monthly payment. The quote that looks cheaper in year one is often the one that costs more by year 15.
Here's a step-by-step way to line up any two offers, whether they're a solar lease, a solar PPA or a plan for purchasing your solar system. If escalators are new to you, here's how a solar escalator works.
Step 1: Make sure both quotes are for the same solar system
Before you look at prices, check that you're comparing apples to apples. Line up these details from each quote:
- System size in kilowatts
- Estimated electricity produced each year, in kilowatt-hours
- The solar panel and solar inverter brands
- Contract length, usually 20 to 25 years
- Whether it's a lease, a PPA or a purchase
- The yearly payment amounts, not just the first one
A cheaper quote for a smaller system isn't really cheaper. It just makes less power. If one system produces 20% more electricity, that has to be part of the math.
Step 2: Find the escalator clause in each solar lease or PPA
Every lease or PPA spells out its escalator clause in the pricing section. Look for the annual escalator percentage and when it kicks in. One quote might show a 2.9% annual increase, while the other is a flat rate that never moves. Write both escalator rates down next to each other.
Comparing a solar PPA quote with a solar lease quote
A solar lease charges a fixed monthly amount for the entire solar system. A power purchase agreement charges per kilowatt-hour for the power the panels make. To compare a PPA or lease side by side, convert both to a price per kilowatt-hour, which is Step 4. Here's more on how a solar lease and a PPA differ.
Step 3: Add up the total cost over time
Say Quote A is a $140 monthly payment at 2.9%, and Quote B is $160 a month with no escalator:
| Total paid after | Quote A: $140 at 2.9% | Quote B: $160 flat | Lower total cost |
|---|---|---|---|
| 5 years | $8,902 | $9,600 | Quote A, by $698 |
| 10 years | $19,171 | $19,200 | Quote A, by $29 |
| 15 years | $31,018 | $28,800 | Quote B, by $2,218 |
| 20 years | $44,686 | $38,400 | Quote B, by $6,286 |
| 25 years | $60,454 | $48,000 | Quote B, by $12,454 |
Example quotes for illustration. Run your own numbers in the calculator.
Quote A is cheaper at first. Its payment passes $160 in year 6, and its running total passes Quote B in year 11. Over the full 25 years, Quote A's total amount comes to about $12,454 more. That's the number most solar companies don't put on page one.
Line up your two quotes
Enter each starting payment and escalator and see the totals year by year.
Run my numbersStep 4: Compare the price per kWh to your utility rates
Divide each quote's yearly payments by the system's estimated yearly production. Say both systems are expected to make 8,000 kWh a year. Quote A works out to about 21 cents per kilowatt-hour in year one, and Quote B to about 24 cents. By year 10, Quote A climbs to about 27 cents, and by year 25 it reaches about 42 cents.
Now hold those numbers up against the electricity rate on your utility bill. That's the real test of whether either deal saves you money, and when. Here's how solar lease escalators compare with Massachusetts utility rates over time.
Step 5: Match the escalator rate to how long you'll stay
If you'll be there 10 years or less, the lower starting payment may win. If you're staying 15 years or more, the flat option or a lower escalator usually does. Not sure? Lean toward the quote that holds up over the long run, since most homeowners stay longer than they expect.
Wondering whether a solar payment increase is normal, or worth the lower start? It mostly comes down to this step.
Step 6: Compare financing options, including leasing solar vs. buying
Sometimes the best comparison isn't between two leases. It's between leasing solar and owning it. When you go solar, your main financing options are:
- Solar lease: no upfront cost, a fixed monthly payment that may escalate, and the solar provider owns the equipment.
- Solar PPA: no upfront cost, a per kilowatt-hour price that may escalate, and the provider owns the system.
- Cash purchase or a solar loan: you purchase a solar system, there's no escalator, and a loan is a fixed payment.
Lease vs. purchase: what to line up
For owned solar, compare the loan payment and the upfront cost against the lease or PPA totals over the same years. The electricity generated by a solar system you own is yours, and owned solar can add to your home's market value. A leased residential solar PV system usually doesn't. Every solar solution and solar financing choice has trade-offs, so put them all in the same table.
Step 7: Check what each solar provider includes with the solar panels
Two quotes with the same price can still be very different deals. Ask each solar provider:
- Is there a production guarantee if the solar energy system makes less than promised?
- Who handles monitoring and repairs for the panels and inverter after the solar installation?
- What happens if I'm selling my home? Does the buyer take over the contract?
- Can I buy out the remaining payments early, and what would the buyout cost?
- Who pays if the panels have to come off for roof work?
If you might be selling your home in the next decade, the transfer terms matter as much as the price. Plenty of listings include a solar energy system that's leased, and buyers look closely at what they'd be taking on. Here's what to look for in a solar contract before you sign either one.
Step 8: Ask how incentives and the tax credit are handled
The federal tax credit for homeowners who buy their own system ended on December 31, 2025, so any quote that still counts it is out of date. Massachusetts solar incentives, like the SMART program and net metering, still matter. With leases and PPAs, the system owner usually receives the SMART incentive, while net metering credits typically land on your own electric bill. Ask each provider to show you which incentive goes where.
How the escalator changes your electric bill savings
Most homes with solar still get a small electric bill from the local utility for fixed charges and nighttime power. Your real savings is your old bill minus your solar payment and your leftover bill. An escalating quote shrinks those savings a little each year. A flat one keeps them steady. Here's why you'll still have an electric bill with solar.
The benefits of solar energy are the same in both quotes
Whichever quote you pick, the benefits of solar stay the same: clean energy, renewable energy from your own roof, and protection from rising electricity costs. Solar power works the same on your roof either way. The escalator only changes how you pay for it. That's why the comparison should focus on price, terms and who owns the solar equipment.
Many solar customers sign the first quote they see. Taking an hour to compare can save thousands over the life of the system, and many solar projects come with more than one option if you ask.
Can a homeowner negotiate the escalator?
Often, yes. Ask each company for every escalator option it offers, including 0%, with the starting payment for each. Then run Step 3 again. If you want a second set of eyes, a local solar consultant can compare the quotes with you and point out what's missing.
Got two quotes and can't tell which is better?
Send them to Mark. He'll compare them side by side and find you an option with no escalator.
Mark, review my quoteFAQs About Comparing Solar Quotes
Should I just pick the quote with the lowest starting payment?
No. The lowest starting payment often comes with the highest escalator. Compare the total you'll pay over the years you plan to stay, not the first bill.
What if one quote is a lease and the other is a PPA?
Turn both into a price per kilowatt-hour. Divide each year's payments by the system's estimated yearly production, then compare them year by year.
Can someone compare my solar quotes for me?
Yes. Send them to Mark and he'll walk through both with you, including the escalator, the totals and the contract terms most people miss.
About Mark Featherstone
Mark has been in solar for over 12 years, working at some of the biggest solar companies in the country, before co-founding Your World Solutions. His goal is simple: help homeowners get into solar deals that actually work for them, and make sure they understand every part of it before they sign.
This article is for general informational purposes only and isn't financial, legal or tax advice. Numbers and examples are estimates for illustration. Actual payments, savings, utility rates and contract terms vary and aren't guaranteed, and rates and program rules can change over time. Review your own contract and talk with a qualified professional before making a decision.