A solar PPA can help an eligible SDG&E homeowner use renewable electricity without purchasing the system upfront. Looking at the agreement's final years as well as its first payment makes that long-term choice easier to understand, especially when battery backup is included.
This guide uses official sources checked September 13, 2026. Your signed agreement determines which options are available and what they cost.
What happens when the PPA term ends?
The Department of Energy's PPA overview describes possible end-of-term options: extending the agreement, purchasing the system or having equipment removed. These are possibilities to check in a contract, not rights that every PPA automatically provides.
Ask the provider to identify the relevant clause and explain each available path:
- Extension: What term, energy price, escalator and service coverage would apply?
- Purchase: How is the price determined, what equipment transfers and who maintains it afterward?
- Removal: Who arranges and pays for removal, and what roof or surface restoration is included?
Record any notice deadline and the action required to select an option. Ask what happens if you do not respond. Do not assume the panels become yours without another payment simply because the original term finishes.
Keep SDG&E's timeline separate
SDG&E's NEM page says customers transition to the Solar Billing Plan when their NEM legacy period ends, with notice by email and through My Energy Center.
That utility billing transition and a private PPA expiration answer different questions. One concerns how your utility account is billed; the other concerns your agreement with the solar provider. Keep both dates in your planning records rather than treating an SDG&E notice as the end of your PPA payments.
For example, if a provider letter discusses a contract decision while an SDG&E notice discusses a billing-plan transition, request two explanations. Ask the provider about contractual choices and SDG&E about the account's tariff. Compare each PPA option using the utility costs expected under the applicable plan, with future assumptions clearly labeled.
What happens to the battery?
Have the provider list the battery, inverter and backup controls alongside the panels. Confirm whether the same end-of-term option covers all of them or whether a separate battery agreement applies.
Request the equipment ages, remaining warranties, service responsibilities and any proposed replacement work. PG&E's general battery guidance notes that reduced charge retention and shorter backup duration can indicate an aging battery. Those equipment considerations also matter for an SDG&E home; a renewed solar contract alone does not establish renewed battery capacity.
Ask the installer to reassess supported circuits and expected runtime for your current household. Backup remains limited by available charge and connected loads, and solar replenishment requires usable sunlight and compatible equipment.
Coordinate any equipment changes
SDG&E's installation center explains the interconnection application process for new solar and battery projects. Before replacing or removing equipment as part of a contract decision, have the provider confirm the utility and permitting steps required for your proposed work. Do not assume the old authorization covers a changed installation.
Compare the full agreement from the start
The CPUC's consumer guide explains provider ownership and ongoing payments for electricity under a PPA. Review qualification, upfront and separate battery charges, rates and escalators, term, maintenance and home-sale provisions together with the final-year options. No upfront purchase does not mean free electricity or guaranteed savings.
Our SDG&E billing guide explains another part of the ongoing cost picture. Explore the homeowner journey with your contract questions to consider a solar-and-battery arrangement that fits both today's priorities and future choices.