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Calcimator

Power Purchase Agreement Calculator

Compare PPA rates with utility rates over the contract term.

InputsLoading live data…

$/kWh
%/yr
$/kWh
%/yr
kWh
years

Results

Total Contract Savings

$2,015,366.00

≈ 5 average U.S. homes

Year 1 Savings

$60,000.00

≈ 5 years of state college

Avg PPA Rate$0.1/kWh
Final Year PPA Rate$0.12/kWh
Crossover Year0
Final Year Utility0.27
How to Use This Calculator
  1. Enter PPA Rate, PPA Escalation, and Current Utility Rate.
  2. Set Utility Escalation, Annual Consumption, and Contract Length.
  3. Review Total Contract Savings ($) and Year 1 Savings ($).
  4. Use Avg PPA Rate (/kWh) and Final Year PPA Rate (/kWh) to inform your decision.

How the result changes with Current Utility Rate

Current Utility RateTotal Contract SavingsYear 1 Savings
0.11$1,025,577.00$25,000.00
0.24$4,899,893.00$162,000.00
0.41$9,566,041.00$327,000.00
0.55$13,468,637.00$465,000.00

What each input means

PPA Rate
Initial PPA electricity rate.
PPA Escalation
Annual PPA rate escalation.
Current Utility Rate
Current utility electricity rate.
Utility Escalation
Expected annual utility rate increase.
Annual Consumption
Annual electricity consumption.
Contract Length
PPA contract duration.

How this is calculated

Worked example, using the default values

  1. Identify Input Parameters
    4 parameters
    PPA Rate = 0.08, PPA Escalation = 2, Current Utility Rate = 0.14, Utility Escalation = 3.5 = 6 input(s) provided
  2. Calculate Total Contract Savings
    Total Contract Savings
    2015366 = $2,015,366
  3. Calculate Year 1 Savings
    Year 1 Savings
    60000 = $60,000
  4. Calculate Avg PPA Rate
    Avg PPA Rate
    0.0972 = 0.0972
  5. Calculate Final Year PPA Rate
    Final Year PPA Rate
    0.1165 = 0.1165

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