A residential solar PPA (power purchase agreement) lets a provider install panels on your roof while you buy the generated electricity at an agreed rate — often with little or no upfront capex. It can suit cash-constrained Australian households, but 2026 shoppers should compare the effective cents-per-kWh against owning a system after STCs and possible battery discounts (~$372/kWh usable).
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Indicative 2026 pricing: a typical 6.6kW system often quotes around $5,000–$8,000 after the STC discount (metro installs often $5,000–$7,500; premium/regional can run higher). See our solar cost guide.
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The provider owns the assets, claims incentives where contractually allowed, and bills you for solar kWh used on-site (sometimes with export arrangements). When you sell the house, assignment rules matter.
Ownership after STC discounts often wins over long horizons if you can fund the deposit. PPAs trade higher lifetime cents for lower upfront cash. Run both spreadsheets with the same tariff file.
Annual escalators, early termination fees, roof repair responsibilities, inverter replacement obligations and moving-house assignment fees can erase headline savings. Read the full PDF.
STCs and battery support may flow to the system owner under the contract. Confirm you are not paying ownership prices while the provider keeps all subsidies.
PPA hardware must still connect lawfully with CEC-accredited practitioners and listed products. A PPA does not legalise unaccredited work.
Short expected tenure, limited capital, or sites where employers/aggregators bundle energy services. Otherwise get ownership quotes via MrSolar and compare apples to apples.
Compare PPA offers against ownership quotes from CEC-accredited installers via MrSolar.
Written and reviewed by Daniel (Marketplace lead, Epic Unicorn Pty Ltd). We build pages from Australian solar datasets and regulatory references, then map you to CEC-accredited installers only.
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