Solar PPA — Honest Answers
Every Question Homeowners Ask Before Going Solar
These are the real questions — the ones people ask after they've already seen their savings estimate. Answered without the pitch.
The Basics
What's the catch? This sounds too good to be true.
Fair question. Here's what you're actually committing to: a 25-year Power Purchase Agreement with a 3.5% annual rate escalator. You don't own the panels — Freedom Forever does. You can't move the system to a new house (but it transfers to the buyer if you sell). And there's a credit check. That said, your PPA escalator is contractually fixed at 3.5% while SCE's rate has historically grown at 7%+ with no cap. By year 10, the gap between what you'd pay SCE vs. your PPA rate is substantial. By year 25, it's dramatic. The 'catch' is a long-term commitment — but to a rate that's lower than what you're already paying.
Is this really no money down?
Yes. With a PPA (Power Purchase Agreement), Freedom Forever owns the solar system and you buy the power it produces at a lower rate than SCE. Zero down payment, zero installation cost, zero maintenance cost. You just pay a lower electricity bill.
Are the savings guaranteed?
Freedom Forever offers a production guarantee. If the system generates less than the annual kWh amount stated in your contract, they credit you the difference. It's backed in writing — not just a promise. Terms and exclusions apply; review your contract for full details.
25 years is a long commitment.
Your current commitment to SCE has no end date and no rate cap. A 25-year PPA gives you a locked-in escalator of 3.5% vs. SCE's historical 7%+ annual increases. You're already committed to paying for electricity — this just makes it cheaper.
Selling Your Home
What if I sell my house?
The PPA transfers to the new buyer — no credit check required on their end, no approval process you have to manage. The buyer inherits a lower electricity rate from day one, which is a genuine selling point in SCE territory where rates keep climbing. It's not a lien on your property, doesn't affect your title, and doesn't complicate the sale. Your agent discloses it like any other home feature — same as a home warranty.
Tax Credits & Financial Questions
What about the solar tax credit?
The personal residential tax credit (Section 25D) only applies if you own your solar system outright. As a PPA customer, you never owned the system — so you were never eligible for it regardless. Instead, Freedom Forever (the system owner) claims the commercial Section 48E investment tax credit and incorporates those savings into your lower PPA rate. You get the economic benefit without filing anything or owing the taxes to claim it.
Why is there a deadline?
The federal commercial tax credit (Section 48E) that makes today's PPA rates possible requires construction to begin by July 4, 2026. After that deadline, PPA rates will likely increase because the installer loses the tax credit benefit. This is a real federal deadline, not a sales tactic.
Do I need good credit?
A PPA typically requires a soft credit check — generally a 650+ FICO score. If you're close to that threshold, it's worth running the numbers before assuming you don't qualify. There's no hard pull until you move to a signed agreement, so checking costs you nothing. If credit is a barrier, we can also explore whether purchasing makes more sense for your situation.
SCE Rates & California Policy
What about NEM 3.0 — doesn't that make solar less valuable?
NEM 3.0 only affects homeowners who own their system and sell excess power back to the grid at low export rates. With a PPA, you don't own the system — Freedom Forever does, and they handle all interconnection. Your bill comparison is simply your PPA rate vs. SCE's retail rate. NEM 3.0 is actually why every PPA today includes battery storage: your excess solar charges the battery during the day, then you draw from it during expensive evening peak hours instead of exporting at low rates. The PPA structure sidesteps NEM 3.0 entirely.
I heard California might reverse NEM 3.0. Should I wait and see?
The court challenge questions whether CPUC undervalued solar exports — it's not pausing any installations and legal experts consider a full reversal unlikely in the near term. Meanwhile, the federal Section 48E commercial tax credit that keeps PPA rates low has a hard construction deadline of July 4, 2026. Waiting on a long-shot court case while the PPA rate window closes is a costly trade. If NEM 3.0 does change, your locked PPA rate can only go down — it can't get worse.
Why do I need a battery?
Under California's NEM 3.0 rules, the compensation for solar exported to the grid during the day is much lower than it used to be. A battery stores your daytime solar production so you use it yourself during expensive evening peak hours instead of buying that power from SCE. This significantly increases your actual monthly savings vs. solar alone.
Freedom Forever & Company Risk
I had a bad experience with another solar company.
You're not alone — SunPower, Sunnova, and Mosaic all went bankrupt. That's exactly why company stability matters. Freedom Forever is still operating, still installing, and still honoring every warranty. They're also headquartered in Temecula — same city as many of the homeowners I work with.
What if Freedom Forever goes out of business like SunPower?
SunPower, Sunnova, Mosaic — all bankrupt in 2023-2024. Freedom Forever is still installing, still headquartered in Temecula — same city you live in. Every PPA also comes with a warranty that's backed by the company, not just a promise. I've stayed with Freedom Forever because I believe they'll be standing when my customers' 25-year agreements are up. That said, no company is guaranteed to survive 25 years — that's a real risk worth acknowledging.
Property & Installation
My HOA might not allow solar.
California Civil Code Section 714 prohibits HOAs from banning solar installations on single-family homes. Your HOA can regulate placement and aesthetics (no panels visible from the street, for example), but they cannot deny your right to install solar. If your HOA tries to block it, show them the statute — it's been state law since 1978.
My roof is older — does that matter?
Yes, and it's worth knowing upfront. Before installation, Freedom Forever does a satellite and in-person roof assessment. If the roof has fewer than 5 years of life left, they'll typically recommend a reroof first. Some homeowners combine a new roof and solar into a single project to simplify permitting. We'll tell you honestly what we find during the assessment — no surprises after you sign.
Still have a question?
I read every reply. Or grab 15 minutes and I'll walk through anything specific to your home, roof, and SCE bill.
Book a 15-Min CallOr text Adrian directly at (951) 290-3014