Prior to you sign your name to a solar panel lease on your home in Bonita CA 91902 you have to understand exactly what you are actually getting into. If you’re in the business of offering solar leases possibly you need to attempt Googling this, “benefits of solar lease” Read all the page one results and see what your client’s are checking out if they do even a small amount of research. You likewise may try Googling, “selling home with solar lease” and “solar lease vs. buy”. Read exactly what your client’s will read when they do 30 minutes of research online before dedicating to a 20 year contract. 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 visit you’ve got nearly no chance of closing it later. Why not change your method do exactly what’s right for the consumer and get on board with a business that supplies industry leading value (cost + quality + service).
The Solar Lease in Bonita CA 91902 or PPA Sales Pitch generally consists of 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 promise to pay X hundred dollars per month is hardly paying absolutely nothing. If you build up all of those monthly payments throughout the term of the contract you’ll be paying 2 to 3 times exactly what you would have paid acquiring the solar system even if you consider the interest paid on the solar loan. Many absolutely no money down solar loans are offered. If you have the credit score to get approved for the lease you can use the bank’s cash to fund your solar system with no cash down.
[ssvideo keyword=”Solar Companies” title=”Solar Contractors in Bonita”]
2. No worries. The leasing/PPA company in Bonita CA 91902 is liable for all repair and maintenance on the system.
The leasing business will certainly not clean your solar panels which has to do with only maintenance used on a solar system. Solar systems are very low maintenance without any 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 companies’ guarantee. The majority of tier 1 solar equipment makers are larger and more financially stable than the solar leasing company by lots of multiples. Those long service warranties are backed up by a 20 year bumper to bumper warranty from Solar Symphony.
3. Insurance– go solar with a lease and the leasing company guarantees the system.
Purchase a system and the solar system is covered under your house owner’s policy for a just a couple dollars per month.
4. Tracking– the leasing company 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 devices utilized by the leasing company.
5. Just sign an agreement and the leasing company does everything else.
When purchasing a system you likewise simply sign an agreement and the solar contractors does everything else. Difference is the leasing companies agreement is 17 pages (small print) and the solar specialist’s agreement is 2 pages.
6. A lease does not hit your individual credit. Doesn’t affect your financial obligation to earnings ratio.
This may be the only true advantage of the lease but it comes at an awefully high cost. If this is among your main concerns there are financing choices for a purchase (PACE and HERO) that also don’t strike your individual credit or impact your financial obligation to income ratio. And those programs allow practically any homeowner to go solar despite their credit rating.
Now for the 6 major disadvantages to a solar lease in Bonita CA 91902 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 investing in solar on your roofing! You’re just offering them an ensured 20 year cash flow!
2. Now you have two energy expenses not just one! In essence the renting business becomes a second utility. So, sign a solar lease and now you have two energy companies you have to pay each month.
3. A lot of leases or PPAs carry an annual cost escalator, typically 2.9 %. So while you may be saving money today in a numerous years you won’t be.
4. You won’t have the ability to assert the 30 % federal tax credit and any appropriate cash refunds. You likewise will not have the ability to assert any tax deductible interest on solar loan payments (HELOC or PACE).
5. You never get to free power with a lease or PPA. In contrast, if you purchase a solar system once the solar loan is settled you can get totally free electrical power from the sun for 10– 15 years depending on the length of the solar loan.
[google-map location=”Bonita CA”]
6. Selling your house with a solar lease or PPA can be troublesome. Solar leases need the new owner to assume the lease and terms. If you read any of the above you can most likely see why an educated consumer would not have an interest in assuming the obligations of your lease. This is particularly true if the lease is 7 or more years old and the yearly expense escalator in the lease has actually now raised the cost of electrical power to equal or more than the expense of electricity from the energy.