Before you sign your name to a solar panel lease on your house in Anaheim CA 92817 you need to understand what you are actually getting into. If you’re in business of offering solar leases maybe you should try Googling this, “benefits of solar lease” Read all the page one results and see what your customer’s are reading if they do even a percentage of research. You likewise may try Googling, “selling home with solar lease” and “solar lease vs. purchase”. Read what your client’s will read when they do 30 minutes of study online before committing to a 20 year agreement. Perhaps you’ll now understand why you get numerous cancellations and why if you do not close the deal on the first appointment you’ve got almost no chance of closing it later. Why not alter your strategy do exactly what’s right for the consumer and get on board with a business that supplies market leading value (rate + quality + service).
The Solar Lease in Anaheim CA 92817 or PPA Sales Pitch usually includes six bottom lines. We went over each below.
1. Go Solar and Pay Nothing! Or no money out of pocket.
Signing a 20 year contract in which you guarantee to pay X hundred dollars per month is barely paying nothing. If you accumulate all those month-to-month payments during the term of the agreement you’ll be paying 2 to 3 times exactly what you would have paid buying the solar system even if you factor in the interest paid on the solar loan. Numerous zero cash down solar loans are offered. If you have the credit history to get the lease you can use the bank’s cash to finance your solar system with absolutely no cash down.
[ssvideo keyword=”Solar Contractors” title=”Solar Companies in Anaheim”]
2. No worries. The leasing/PPA company in Anaheim CA 92817 is liable for all maintenance and repairs on the system.
The renting company will certainly not clean your photovoltaic panels which has to do with just upkeep required on a solar system. Solar systems are extremely low upkeep with no moving parts and come with incredibly long producer’s warranties and efficiency assurances. 25 years with a microinverter based system, that’s longer than the leasing business’ warranty. Most tier 1 solar equipment makers are bigger and more financially stable than the solar leasing business by lots of multiples. Those long service warranties are supported by a 20 year bumper to bumper guarantee from Solar Symphony.
3. Insurance coverage– go solar with a lease and the renting business insures the system.
Purchase a system and the solar system is covered under your house owner’s policy for a simply a couple dollars per month.
4. Tracking– 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, making use of the exact same tracking equipment utilized by the renting company.
5. Simply sign an agreement and the leasing company does everything else.
When acquiring a system you likewise simply sign an agreement and the solar service providers does everything else. Difference is the leasing companies agreement is 17 pages (fine print) and the solar service provider’s contract is 2 pages.
6. A lease does not hit your personal credit. Doesn’t impact your financial obligation to income ratio.
This might be the only real advantage of the lease but it comes at an awefully high rate. If this is among your major issues there are funding choices for a purchase (PACE and HERO) that likewise don’t hit your individual credit or impact your debt to earnings ratio. And those programs permit almost any house owner to go solar regardless of their credit rating.
Now for the 6 primary disadvantages to a solar lease in Anaheim CA 92817 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 investing in solar on your roof! You’re simply offering them an ensured 20 year cash flow!
2. Now you have 2 utility expenses not just one! In essence the leasing company becomes a second energy. So, sign a solar lease and now you have 2 energy companies you need to pay monthly.
3. The majority of leases or PPAs carry a yearly cost escalator, usually 2.9 %. So while you might be saving cash today in a numerous years you won’t be.
4. You won’t be able to claim the 30 % federal tax credit and any appropriate money refunds. You likewise will not be able to declare any tax deductible interest on solar loan payments (HELOC or PACE).
5. You never ever get to complimentary power with a lease or PPA. In contrast, if you buy a solar system once the solar loan is settled you can delight in complimentary electricity from the sun for 10– 15 years depending upon the length of the solar loan.
[google-map location=”Anaheim CA”]
6. Selling your home with a solar lease or PPA can be bothersome. Solar leases require the new owner to assume the lease and terms. If you check out any of the above you can probably see why an enlightened consumer would not want presuming the responsibilities of your lease. This is specifically real if the lease is 7 or more years of ages and the yearly cost escalator in the lease has actually now raised the cost of electrical power to equal or more than the expense of electrical power from the energy.