So important it’s worth restating- Yes, the discount tiers affect BOTH the purchase and the Power Purchase Agreement (PPA) model. Essentially in the PPA each tier represents a penny per kilowatt hour savings. We are already at tier 3 – with tier 4 in our sights – so the base price per kWh through the PPA for everyone is currently $.12. When we get to tier 4 the base price becomes $.11 per kWh, again for everyone – those that signed up on day one and those that sign up today.
Remember that PPA pricing is always a relationship between the cost of the system and its production. In other words, the above base price is based on a 90% site efficient sample system. If your site is a perfect 100% efficient (your roof is a perfect orientation with no tree shade), your PPA price per kWh will actually be better than the above. If your site is 80% efficient (the state’s cut-off for rebate eligibility, and so the “worst case” site in the program) your price per kWh could be slightly higher.
Your specific PPA rate could be slightly different than the above, but as adoption increases your rate gets better!