Before you sign your name to a solar panel lease on your house in Bonita CA 91908 you need to comprehend what you are truly getting into. If you’re in business of selling solar leases possibly you must attempt Googling this, “benefits of solar lease” Read all of the page one results and see exactly 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. buy”. Read exactly what your client’s will read when they do 30 minutes of study online before dedicating to a 20 year agreement. Maybe you’ll now comprehend why you get a lot of cancellations and why if you don’t seal the deal on the first appointment you’ve got practically no chance of closing it later. Why not change your method do exactly what’s right for the client and get on board with a company that supplies market leading value (cost + quality + service).
The Solar Lease in Bonita CA 91908 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 promise to pay X hundred dollars per month is barely paying nothing. If you build up 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. Lots of no cash down solar loans are offered. If you have the credit report to get the lease you can make use of the bank’s money to fund your solar system with no money down.
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2. No concerns. The leasing/PPA company in Bonita CA 91908 is accountable for all repair and maintenance on the system.
The renting business will not clean your photovoltaic panels which is about only maintenance used on a solar system. Solar systems are exceptionally low maintenance without any moving parts and include extremely long producer’s warranties and efficiency guarantees. 25 years with a microinverter based system, that’s longer than the leasing business’ warranty. Many tier 1 solar devices manufacturers are larger and more solvent than the solar leasing company by numerous multiples. Those long guarantees are supported by a 20 year bumper to bumper service warranty from Solar Symphony.
3. Insurance– go solar with a lease and the renting company insures 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. Tracking– the leasing business monitors your system for the life of the lease/PPA.
When you purchase a system you also get keeping an eye on for the life of the system, using the exact same monitoring equipment utilized by the leasing company.
5. Simply sign a contract and the leasing company does everything else.
When purchasing a system you also just sign a contract and the solar contractors does everything else. Distinction is the leasing companies agreement is 17 pages (small print) and the solar professional’s agreement is 2 pages.
6. A lease does not strike your personal credit. Does not affect your debt to earnings ratio.
This may be the only real advantage of the lease but it comes at an awefully high rate. If this is among your main issues there are financing alternatives for a purchase (PACE and HERO) that likewise do not hit your individual credit or affect your debt to earnings ratio. And those programs permit virtually any property owner to go solar despite their credit rating.
Now for the 6 major 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 business are investing in solar on your roof! You’re just supplying them a guaranteed 20 year capital!
2. Now you have 2 energy expenses not just one! In essence the renting business ends up being a second energy. So, sign a solar lease and now you have two utility business you need to pay monthly.
3. The majority of leases or PPAs bring an annual cost escalator, generally 2.9 %. So while you may be saving cash today in a several years you will not be.
4. You won’t be able to assert the 30 % federal tax credit and any applicable money discounts. You likewise won’t be able to assert 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 settled you can get free electricity from the sun for 10– 15 years depending on the length of the solar loan.
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6. Offering your home with a solar lease or PPA can be problematic. Solar leases need the new owner to assume the lease and terms. If you check out any of the above you can probably see why an informed consumer would not be interested in presuming the obligations of your lease. This is specifically true if the lease is 7 or more years old and the yearly cost escalator in the lease has actually now raised the cost of electrical power to equivalent or more than the expense of electrical energy from the energy.