Prior to you sign your name to a solar panel lease on your home in Brea CA 92622 you have to comprehend what you are truly getting into. If you’re in business of selling solar leases maybe you should attempt 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 exactly what your consumer’s will certainly check out when they do 30 minutes of research online before committing to a 20 year contract. Perhaps you’ll now understand why you get so many cancellations and why if you don’t close the deal on the very first consultation you’ve got practically no opportunity of closing it later on. Why not change your strategy do what’s right for the client and get on board with a business that supplies industry leading value (price + quality + service).
The Solar Lease in Brea CA 92622 or PPA Sales Pitch normally consists of six main points. We discussed each below.
1. Go Solar and Pay Nothing! Or no cash out of pocket.
Signing a 20 year agreement where you assure to pay X hundred dollars per month is hardly paying nothing. If you build up all those regular monthly payments throughout the term of the agreement you’ll be paying 2 to 3 times what you would have paid purchasing the solar system even if you factor in the interest paid on the solar loan. Many zero money down solar loans are available. If you have the credit report to get approved for the lease you can utilize the bank’s cash to fund your solar system with no cash down.
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2. No fears. The leasing/PPA company in Brea CA 92622 is accountable for all repair and maintenance on the system.
The leasing business will not clean your photovoltaic panels which is about just maintenance needed on a solar system. Solar systems are incredibly low upkeep without any moving parts and have very long maker’s guarantees and performance assurances. 25 years with a microinverter based system, that’s longer than the leasing companies’ warranty. Most tier 1 solar equipment manufacturers are bigger and more financially stable than the solar leasing company by many multiples. Those long 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 business guarantees 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. Monitoring– the renting 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 same monitoring devices utilized by the leasing business.
5. Just sign an agreement and the leasing company does everything else.
When purchasing a system you likewise just sign a contract and the solar professionals does everything else. Distinction is the leasing companies agreement is 17 pages (small print) and the solar specialist’s agreement is 2 pages.
6. A lease doesn’t strike your personal credit. Doesn’t influence your financial obligation to income ratio.
This might be the only true benefit of the lease but it comes at an awefully high price. If this is among your primary issues there are financing options for a purchase (PACE and HERO) that also do not strike your personal credit or impact your financial obligation to income ratio. And those programs allow almost any property owner to go solar no matter their credit score.
Now for the six main downsides to a solar lease in Brea CA 92622 or PPA.
1. A lease is a 20 year liability. It is not an asset or an investment in solar. The solar leasing companies are purchasing solar on your roofing! You’re simply supplying them an ensured 20 year cash flow!
2. Now you have two utility bills not simply one! In essence the leasing company ends up being a 2nd energy. So, sign a solar lease and now you have two energy companies you have to pay each month.
3. The majority of leases or PPAs bring a yearly expense 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 claim the 30 % federal tax credit and any suitable money discounts. You likewise won’t have the ability to assert any tax deductible interest on solar loan payments (HELOC or PACE).
5. You never get to totally free power with a lease or PPA. In contrast, if you buy a solar system once the solar loan is settled you can delight in totally free electricity from the sun for 10– 15 years depending on the length of the solar loan.
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6. Offering your house with a solar lease or PPA can be bothersome. Solar leases require the brand-new owner to assume the lease and terms. If you read any of the above you can most likely see why an educated customer would not be interested in assuming the commitments of your lease. This is specifically true 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 energy to equal or more than the cost of electrical power from the utility.