Before you sign your name to a solar panel lease on your house in Anaheim CA 92806 you need to comprehend exactly what you are truly getting into. If you’re in the business of selling solar leases possibly you must attempt Googling this, “benefits of solar lease” Read all the page one results and see what your customer’s are checking out if they do even a small amount of homework. You likewise may try Googling, “selling home with solar lease” and “solar lease vs. purchase”. Read what your customer’s will read when they do 30 minutes of study online prior to dedicating to a 20 year agreement. Maybe you’ll now understand why you get a lot of cancellations and why if you don’t close the deal on the first appointment you’ve got nearly no possibility of closing it later on. Why not alter your approach do what’s right for the customer and get on board with a company that supplies market leading value (cost + quality + service).
The Solar Lease in Anaheim CA 92806 or PPA Sales Pitch generally includes six bottom lines. We went over each below.
1. Go Solar and Pay Nothing! Or no cash out of pocket.
Signing a 20 year contract where you guarantee to pay X hundred dollars per month is hardly paying absolutely nothing. If you accumulate all those regular monthly payments throughout the term of the contract you’ll be paying 2 to 3 times exactly what you would have paid buying the solar system even if you consider the interest paid on the solar loan. Numerous no cash down solar loans are readily available. If you have the credit history to qualify for the lease you can make use of the bank’s cash to finance your solar system with no money down.
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2. No worries. The leasing/PPA company in Anaheim CA 92806 is accountable for all maintenance and repairs on the system.
The leasing business will certainly not clean your solar panels which is about only maintenance required on a solar system. Solar systems are very low maintenance with no moving parts and include extremely long manufacturer’s guarantees and performance assurances. 25 years with a microinverter based system, that’s longer than the leasing companies’ warranty. The majority of tier 1 solar devices producers are bigger and more financially stable than the solar leasing business by numerous multiples. Those long guarantees are supported by a 20 year bumper to bumper warranty from Solar Symphony.
3. Insurance coverage– go solar with a lease and the leasing company guarantees the system.
Purchase a system and the solar system is covered under your property owner’s policy for a just a couple dollars per month.
4. Monitoring– the leasing business monitors your system for the life of the lease/PPA.
When you purchase a system you likewise get monitoring for the life of the system, utilizing the very same tracking equipment made use of by the leasing company.
5. Simply sign an agreement and the leasing business does everything else.
When acquiring a system you likewise simply sign a contract and the solar service providers does everything else. Distinction is the leasing companies agreement is 17 pages (fine print) and the solar contractor’s contract is 2 pages.
6. A lease doesn’t hit your personal credit. Doesn’t impact your debt to earnings ratio.
This might be the only real advantage of the lease however it comes at an awefully high price. If this is one of your major concerns there are funding alternatives for a purchase (PACE and HERO) that also don’t hit your personal credit or affect your financial obligation to earnings ratio. And those programs allow virtually any homeowner to go solar no matter their credit rating.
Now for the 6 primary disadvantages to a solar lease in Anaheim CA 92806 or PPA.
1. A lease is a 20 year liability. It is not an asset or an investment in solar. The solar leasing business are purchasing solar on your roofing system! You’re simply providing them a guaranteed 20 year capital!
2. Now you have 2 utility costs not just one! In essence the leasing company ends up being a 2nd utility. So, sign a solar lease and now you have two utility companies you need to pay each month.
3. Most leases or PPAs carry a yearly cost escalator, usually 2.9 %. So while you may be saving money today in a numerous years you will not be.
4. You won’t be able to declare the 30 % federal tax credit and any suitable money refunds. You also won’t be able to declare any tax deductible interest on solar loan payments (HELOC or PACE).
5. You never ever get to free power with a lease or PPA. On the other hand, if you buy a solar system once the solar loan is paid off you can enjoy totally free electricity from the sun for 10– 15 years depending on the length of the solar loan.
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6. Selling your house with a solar lease or PPA can be troublesome. Solar leases require the new owner to assume the lease and terms. If you read any of the above you can probably see why an enlightened consumer would not be interested in assuming the responsibilities of your lease. This is especially true if the lease is 7 or more years of ages and the yearly cost escalator in the lease has actually now raised the expense of electricity to equivalent or more than the expense of electrical power from the energy.