Prior to you sign your name to a solar panel lease on your home in Bonita CA 91908 you have to understand what you are actually getting into. If you’re in business of selling solar leases maybe you must try Googling this, “benefits of solar lease” Read all of the page one results and see what your client’s are reading if they do even a percentage of homework. You also might attempt Googling, “selling home with solar lease” and “solar lease vs. purchase”. Read what your customer’s will read when they do 30 minutes of research online prior to dedicating to a 20 year agreement. Possibly you’ll now understand why you get so many cancellations and why if you do not close the deal on the very first visit you’ve got practically no opportunity 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 (cost + quality + service).
The Solar Lease in Bonita CA 91908 or PPA Sales Pitch generally consists of six bottom lines. We discussed each below.
1. Go Solar and Pay Nothing! Or no cash out of pocket.
Signing a 20 year agreement in which you promise to pay X hundred dollars per month is barely paying absolutely nothing. If you add up all those month-to-month payments during the regard to the contract 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. Lots of absolutely no cash down solar loans are readily available. If you have the credit history to qualify for the lease you can utilize the bank’s money to fund your solar system with no money down.
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2. No worries. The leasing/PPA business in Bonita CA 91908 is responsible for all maintenance and repairs on the system.
The renting business will certainly not clean your photovoltaic panels which is about only maintenance required on a solar system. Solar systems are very low maintenance with no moving parts and include incredibly long producer’s guarantees and performance warranties. 25 years with a microinverter based system, that’s longer than the leasing business’ guarantee. A lot of tier 1 solar equipment manufacturers are bigger and more solvent than the solar leasing business by lots of multiples. Those long service 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 guarantees the system.
Purchase a system and the solar system is covered under your homeowner’s policy for a simply a couple dollars per month.
4. Monitoring– the leasing company monitors your system for the life of the lease/PPA.
When you acquire a system you also get monitoring for the life of the system, using the exact same tracking devices utilized by the renting business.
5. Just sign a contract and the leasing business does everything else.
When purchasing a system you also just sign an agreement and the solar specialists does everything else. Distinction is the leasing business agreement is 17 pages (fine print) and the solar specialist’s agreement is 2 pages.
6. A lease doesn’t hit your personal credit. Does not impact your debt to earnings ratio.
This might be the only true benefit of the lease however it comes at an awefully high rate. If this is among your major concerns there are financing choices for a purchase (PACE and HERO) that likewise do not strike your individual credit or influence your debt to earnings ratio. And those programs enable virtually any homeowner to go solar no matter their credit rating.
Now for the six primary drawbacks to a solar lease in Bonita CA 91908 or PPA.
1. A lease is a 20 year liability. It is not a possession or a financial investment in solar. The solar leasing companies are purchasing solar on your roof! You’re just supplying them a guaranteed 20 year cash flow!
2. Now you have 2 energy bills not just one! In essence the renting business ends up being a second energy. So, sign a solar lease and now you have 2 energy companies you have to pay each month.
3. The majority of leases or PPAs carry an annual expense escalator, usually 2.9 %. So while you may be conserving money today in a numerous years you won’t be.
4. You will not be able to assert the 30 % federal tax credit and any suitable cash rebates. You likewise will not have the ability to declare any tax deductible interest on solar loan payments (HELOC or PACE).
5. You never get to totally 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 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 bothersome. Solar leases need the new owner to presume the lease and terms. If you check out any of the above you can probably see why an informed consumer would not want assuming the responsibilities of your lease. This is particularly real if the lease is 7 or more years of ages and the annual expense escalator in the lease has actually now raised the expense of electrical energy to equal or more than the expense of electricity from the energy.