Escalators: the one line in a Tampa solar contract people skip
A 2.9% annual escalator looks harmless in year one. Here is what it does to a Tampa payment by year fifteen.
Escalators are not inherently predatory. Undisclosed escalators are.
What it is
A contractual annual increase to your payment or per-kWh rate, commonly in the 0% to 2.9% range. It is disclosed in the agreement, usually in a schedule rather than on the summary page.
What it does over time
Compounding is unintuitive. A payment that rises 2.9% annually is roughly 50% higher after fifteen years and materially higher again by year twenty five. Whether that is fine depends entirely on whether utility rates rise faster than the escalator — which is the bet the structure asks you to make.
How to compare offers
Ask both companies for the payment in years 1, 5, 10, 15, 20 and 25, and the total across the term. Then compare total to total. A flat payment that starts $15 higher can be cheaper by a wide margin.
What we do
We show the escalator schedule at the table and put the year-ten number in front of you before you sign. If a flat structure is available and cheaper across the term for your situation, we will say so even when it is the smaller ticket.
Read more
- Solar panel cost in Florida
- Are solar panels worth it in Florida?
- Financing programs
- Tampa solar installation
Talk it through with a Tampa crew
Origin is a Tampa-based solar, roofing, battery and electrical contractor (Florida license EC13012465) serving Tampa Bay and Central Florida. Start with the quick questionnaire, compare programs on the financing page, or book a consultation — in person, virtual, or a call back.
Approvals, rates and terms are set by each lender. Nothing here is a guarantee of approval or of savings.
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