Before you sign your name to a solar panel lease on your house in Cathedral City CA 92234 you have to understand exactly what you are actually getting into. If you’re in business of selling solar leases maybe you need to try 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 small amount of homework. You likewise might try Googling, “selling home with solar lease” and “solar lease vs. buy”. Read what your customer’s will check out when they do 30 minutes of study online before dedicating to a 20 year agreement. Possibly you’ll now understand why you get so many cancellations and why if you do not seal the deal on the very first appointment you’ve got almost no opportunity of closing it later on. Why not change your approach do exactly what’s right for the consumer and get on board with a company that supplies industry leading value (cost + quality + service).
The Solar Lease in Cathedral City CA 92234 or PPA Sales Pitch generally consists of six main points. We talked about each below.
1. Go Solar and Pay Nothing! Or no cash out of pocket.
Signing a 20 year contract where you assure to pay X hundred dollars per month is hardly paying nothing. If you add up all those regular monthly payments throughout the regard to the contract 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 absolutely no money down solar loans are offered. If you have the credit history to get the lease you can utilize the bank’s cash to fund your solar system with zero money down.
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2. No worries. The leasing/PPA company in Cathedral City CA 92234 is liable for all repair and maintenance on the system.
The renting business will certainly not clean your photovoltaic panels which has to do with just upkeep required on a solar system. Solar systems are exceptionally low maintenance with no moving parts and come with incredibly long producer’s guarantees and performance assurances. 25 years with a microinverter based system, that’s longer than the leasing business’ guarantee. Many tier 1 solar devices manufacturers are bigger and more financially stable than the solar leasing company by lots of multiples. Those long warranties are backed up by a 20 year bumper to bumper warranty from Solar Symphony.
3. Insurance coverage– go solar with a lease and the renting company guarantees the system.
Purchase a system and the solar system is covered under your house owner’s policy for a simply a couple dollars per month.
4. Monitoring– the renting 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, making use of the exact same monitoring equipment used by the leasing company.
5. Just sign an agreement and the renting company does everything else.
When purchasing a system you likewise simply sign an agreement and the solar contractors does everything else. Distinction is the leasing business contract is 17 pages (small print) and the solar service provider’s agreement is 2 pages.
6. A lease doesn’t strike your individual credit. Does not affect your financial obligation to income ratio.
This may be the only real advantage of the lease however it comes at an awefully high price. If this is one of your primary issues there are financing options for a purchase (PACE and HERO) that also do not hit your personal credit or influence your financial obligation to income ratio. And those programs permit virtually any property owner to go solar despite their credit rating.
Now for the six primary downsides to a solar lease in Cathedral City CA 92234 or PPA.
1. A lease is a 20 year liability. It is not an asset or a financial investment in solar. The solar leasing business are investing in solar on your roofing system! You’re simply providing them a guaranteed 20 year cash flow!
2. Now you have 2 utility expenses not just one! In essence the renting company ends up being a second utility. So, sign a solar lease and now you have two utility business you need to pay each month.
3. Most leases or PPAs bring an annual cost escalator, normally 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 claim the 30 % federal tax credit and any appropriate cash discounts. You likewise won’t have the ability 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 settled 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 home with a solar lease or PPA can be problematic. Solar leases need the brand-new owner to assume the lease and terms. If you read any of the above you can most likely see why an informed customer would not have an interest in assuming the obligations of your lease. This is specifically true if the lease is 7 or more years of ages and the yearly expense escalator in the lease has now raised the expense of electrical power to equivalent or more than the cost of electrical power from the utility.