How to Evaluate a Sunrun Power Purchase Agreement: A Budget Manager’s Checklist

Over the past 5 years, I've managed our company's energy budget ($200k annual spend), negotiated with 8 solar vendors, and logged every contract detail in our procurement system. When we first looked at Sunrun's Power Purchase Agreement (PPA), I nearly signed before I realized the real question isn't 'what's your monthly payment?'—it's 'what's included, and what isn't?'

Who This Checklist Is For

You're evaluating a Sunrun solar installation—whether it's a PPA, lease, or cash purchase—and you want to avoid getting burned by fine print. This 6-step checklist works for both commercial property managers and homeowners who treat solar like any other procurement decision. (Note to self: pull this out every time a vendor says 'it's simple.')

Step 1: Know What’s Included vs. What’s Optional

Most buyers focus on the per-panel price and completely miss items like inverter type, battery integration, and EV charger wiring. Ask Sunrun for a line-item breakdown that separates:

• Solar panels and inverters (model and specs)
• Battery backup (e.g., Tesla Powerwall or Sunrun's own storage — verify compatibility)
• EV charger installation (separate quote? bundled?)
• Permits, inspection, and utility interconnection fees

In Q2 2024, when we compared quotes, one vendor listed a $450 'utility connection fee' that Sunrun included in their base price. The transparent vendor actually cost less in total — even though their monthly appeared higher. Bottom line: the price you see should be the price you pay.

Step 2: Calculate Total Cost Over the Contract Term (Not Just the First Year)

Sunrun PPAs typically have a 25-year term with an annual escalation rate (often 2.9% or tied to CPI). If you only look at Year 1, the deal looks amazing. By Year 25, you could be paying 70% more than the initial rate. Use a simple spreadsheet:

Example: Year 1: $0.12/kWh → Year 25: $0.12 × (1.029)^24 ≈ $0.24/kWh. That's a 100% increase—way bigger than most people expect.

I built a TCO calculator after getting burned on a PPA elsewhere (note to self: verify escalation cap). Ask Sunrun for the maximum escalation percentage and whether there's a cap. If they won't disclose it, that's a red flag.

Step 3: Compare Financing Options — Lease, PPA, or Cash Purchase

Sunrun offers multiple structures. Here's the short version:

• PPA: Pay per kWh generated. No upfront cost, but you don't own the system. Escalation matters.
• Lease: Fixed monthly payment regardless of production. Easier to budget, but same escalation risk.
• Cash purchase: You own the panels. Higher upfront, but you get the 30% federal tax credit and any SRECs (solar renewable energy credits).

The question everyone asks is 'what's the lowest monthly?' The question they should ask is 'what do I own and what do I give up?' For example, in a PPA, Sunrun typically keeps the SRECs — which could be worth $500–$1,500 per year depending on your state (Source: SEIA, 2024 pricing). That's a ton of value you're handing over.

Step 4: Check the Fine Print for Battery and EV Add-Ons

This is the step most people overlook. Sunrun promotes bundling solar with battery backup (like the Powerwall) and EV charger installation. Sounds like a no-brainer, but the cost structure can be opaque. Ask explicitly:

• Is the battery included in the PPA rate, or is it a separate purchase/lease?
• What happens if you add an EV charger later? Is there a pre-run conduit fee?
• Are there installation fees for battery placement (e.g., indoor vs. outdoor)?

When we audited our 2023 spending, we found that a 'bundled' quote from a different vendor actually charged $1,200 for a basic EV charger install that Sunrun included at no extra cost — but only if you asked. The third time this happened, I created a verification checklist (should have done it after the first time).

Step 5: Verify Installation and Service Costs — Permits, Upgrades, and Future Repairs

Don't assume the quoted price covers everything. Common hidden costs:

• Main panel upgrade (e.g., 200A to 400A) — can be $2,000–$5,000
• Roof condition assessment — if your roof needs repair, Sunrun may charge a fee to remove and reinstall panels
• Monitoring fees — some providers charge $10–$15/month for app access

Ask Sunrun for a 'risk register' — what could trigger additional costs over the contract life? In 2022, I missed a clause that required annual panel cleaning at my expense. That 'free maintenance' claim was only for the first year. Game-changer? Not really, but it added $300/year to my TCO.

Step 6: Request a Transparent Price Sheet — Check for Hidden Fees

The vendor who lists all fees upfront — even if the total looks higher — usually costs less in the end. Ask Sunrun for a document that includes:

• Base rate and escalation terms
• All one-time fees (permits, interconnection, battery install)
• Annual equipment performance guarantee (what happens if production is below 90% of estimate?)
• Early termination penalties

After comparing 6 solar PPA offers over 3 months using my TCO spreadsheet, I awarded the contract to the vendor who volunteered a complete price breakdown before I asked. (Circa 2023, Sunrun was one of the better ones in that regard — but always verify current practices.)

Common Mistakes to Avoid

• Assuming 'free' means 'no strings attached.' Free installation often ties you to a long contract with escalators.
• Ignoring production guarantee. If your system underperforms, you want a clear remedy — not just a 'we'll monitor it.'
• Not asking about solar incentives. SRECs, net metering policies, and state tax credits vary wildly. Sunrun may claim them — make it a negotiating point.

Prices as of early 2025; verify current rates with Sunrun. This checklist is based on my personal procurement experience and does not constitute financial advice.

— A cost controller who learned the hard way that the cheapest monthly payment isn't the cheapest total cost.