7.1 The core deception in California's PPA / lease contracts

The trap in current California PPA / lease deals is this: they bill based on production, not on what you actually consume.

In reality, only a portion of what their system produces ends up serving your home. Of the daytime output, a small fraction directly powers your loads or charges the battery — most of it gets exported at a few cents per kWh, while you still pay tens of cents per kWh to the utility for evening consumption. The translation: the more electricity their system produces, the more money you lose.

You think you're paying a below-market average price. But once you add the "buy high, sell low" delta, your effective price is actually *higher* than market.

This is why California's NEM 3.0 billing structure is fundamentally incompatible with lease / PPA models.

In California, we strongly advise against signing any lease or PPA contract.