Before you sign your name to a solar panel lease on your house in Atwood CA 92601 you have to understand exactly what you are really getting into. If you’re in the business of selling solar leases maybe you need to try Googling this, “benefits of solar lease” Read all the page one results and see exactly what your customer’s are checking out if they do even a percentage of homework. You also may try Googling, “selling home with solar lease” and “solar lease vs. purchase”. Read what your consumer’s will certainly read when they do 30 minutes of research online before committing to a 20 year agreement. Possibly you’ll now understand why you get a lot of cancellations and why if you do not close the deal on the very first appointment you’ve got virtually no opportunity of closing it later on. Why not change your approach do what’s right for the consumer and get on board with a business that supplies industry leading value (rate + quality + service).
The Solar Lease in Atwood CA 92601 or PPA Sales Pitch usually includes 6 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 assure to pay X hundred dollars per month is hardly paying nothing. If you build up all of those monthly payments during the term of the agreement you’ll be paying 2 to 3 times exactly what you would have paid purchasing the solar system even if you factor in the interest paid on the solar loan. Lots of no cash down solar loans are offered. If you have the credit report to get the lease you can utilize the bank’s cash to finance your solar system with no money down.
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2. No fears. The leasing/PPA business in Atwood CA 92601 is responsible for all repair and maintenance on the system.
The renting business will not clean your solar panels which has to do with only upkeep needed on a solar system. Solar systems are extremely low maintenance with no moving parts and feature incredibly long manufacturer’s service warranties and performance warranties. 25 years with a microinverter based system, that’s longer than the leasing companies’ assurance. Most tier 1 solar devices producers are larger and more financially stable than the solar leasing company by many multiples. Those long warranties are supported by a 20 year bumper to bumper warranty from Solar Symphony.
3. Insurance– go solar with a lease and the renting business insures the system.
Purchase a system and the solar system is covered under your homeowner’s policy for a just a couple dollars per month.
4. Tracking– the leasing business monitors your system for the life of the lease/PPA.
When you buy a system you also get keeping track of for the life of the system, making use of the same monitoring equipment utilized by the renting company.
5. Simply sign a contract and the renting company does everything else.
When acquiring a system you likewise just sign an agreement and the solar contractors does everything else. Distinction is the leasing business contract is 17 pages (fine print) and the solar specialist’s contract is 2 pages.
6. A lease doesn’t strike your individual credit. Does not impact your debt to earnings ratio.
This might be the only real benefit of the lease but it comes at an awefully high price. If this is among your primary concerns there are funding alternatives for a purchase (PACE and HERO) that likewise don’t strike your individual credit or impact your financial obligation to income ratio. And those programs permit virtually any house owner to go solar despite their credit score.
Now for the six main disadvantages to a solar lease in Atwood CA 92601 or PPA.
1. A lease is a 20 year liability. It is not an asset or a financial investment in solar. The solar leasing companies are purchasing solar on your roofing system! You’re simply providing them an ensured 20 year cash flow!
2. Now you have two energy expenses not just one! In essence the renting business becomes a 2nd utility. So, sign a solar lease and now you have two energy business you have to pay monthly.
3. A lot of leases or PPAs carry a yearly expense escalator, usually 2.9 %. So while you might be saving cash today in a several years you will not be.
4. You won’t have the ability to declare the 30 % federal tax credit and any relevant money discounts. You likewise won’t be able to declare any tax deductible interest on solar loan payments (HELOC or PACE).
5. You never get to complimentary power with a lease or PPA. On the other hand, if you purchase a solar system once the solar loan is paid off you can get free electrical energy from the sun for 10– 15 years depending upon the length of the solar loan.
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6. Offering your house with a solar lease or PPA can be problematic. Solar leases use the new owner to assume the lease and terms. If you read any of the above you can probably see why an enlightened customer would not have an interest 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 now raised the expense of electrical power to equal or more than the expense of electrical power from the utility.