A solar power purchase agreement (PPA) works similarly to a lease. A solar developer buys, installs and maintains the panels on your property, and you pay for the power generated on a per kilowatt-hour (kWh) basis. The cost per kWh is typically lower than the utility's rate for the same amount of electricity. It's a good option to get solar without high upfront costs, but you’ll miss out on some tax incentives.