Before you sign your name to a solar panel lease on your home in Chula Vista CA 91909 you need to comprehend what you are actually getting into. If you’re in business of selling solar leases perhaps you must try Googling this, “benefits of solar lease” Read all the page one results and see what your client’s are reading 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 consumer’s will read when they do 30 minutes of research online before dedicating to a 20 year agreement. Possibly you’ll now understand why you get many cancellations and why if you don’t close the deal on the first visit you’ve got almost no chance of closing it later. Why not change your strategy do 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 Chula Vista CA 91909 or PPA Sales Pitch normally consists of 6 main points. We talked about each below.
1. Go Solar and Pay Nothing! Or no money out of pocket.
Signing a 20 year contract where you guarantee to pay X hundred dollars per month is barely paying absolutely nothing. If you accumulate all those month-to-month payments during the term of the contract you’ll be paying 2 to 3 times exactly what you would have paid purchasing the solar system even if you consider the interest paid on the solar loan. Lots of no money down solar loans are offered. If you have the credit history to qualify for the lease you can use the bank’s cash to fund your solar system with absolutely no money down.
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2. No concerns. The leasing/PPA business in Chula Vista CA 91909 is accountable for all repair and maintenance on the system.
The renting company will certainly not clean your photovoltaic panels which is about only upkeep needed on a solar system. Solar systems are incredibly low maintenance without any moving parts and have very long manufacturer’s service warranties and performance guarantees. 25 years with a microinverter based system, that’s longer than the leasing companies’ guarantee. A lot of tier 1 solar equipment makers are larger and more financially stable than the solar leasing company by numerous 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 leasing 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. Tracking– the leasing business monitors your system for the life of the lease/PPA.
When you buy a system you likewise get monitoring for the life of the system, utilizing the same tracking devices made use of by the leasing company.
5. Just sign an agreement and the renting business does everything else.
When acquiring a system you likewise simply sign a contract and the solar professionals does everything else. Difference is the leasing companies agreement is 17 pages (fine print) and the solar service provider’s contract is 2 pages.
6. A lease does not strike your personal credit. Does not affect your financial obligation to income ratio.
This might be the only true benefit of the lease but it comes at an awefully high cost. If this is one of your primary concerns there are financing choices for a purchase (PACE and HERO) that likewise don’t hit your individual credit or influence your financial obligation to earnings ratio. And those programs allow virtually any house owner to go solar despite their credit rating.
Now for the 6 major downsides to a solar lease in Chula Vista CA 91909 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 buying solar on your roof! You’re just offering them a guaranteed 20 year capital!
2. Now you have two utility expenses not simply one! In essence the renting business ends up being a second utility. So, sign a solar lease and now you have two utility companies you need to pay each month.
3. The majority of leases or PPAs lug an annual expense escalator, generally 2.9 %. So while you may be saving money today in a several years you won’t be.
4. You won’t have the ability to declare the 30 % federal tax credit and any relevant cash rebates. You likewise won’t be able to assert any tax deductible interest on solar loan payments (HELOC or PACE).
5. You never ever get to free power with a lease or PPA. On the other hand, if you acquire a solar system once the solar loan is settled you can enjoy 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 troublesome. Solar leases require the brand-new owner to presume the lease and terms. If you check out any of the above you can most likely see why an informed consumer would not have an interest in assuming the obligations of your lease. This is specifically true if the lease is 7 or more years old and the yearly expense escalator in the lease has actually now raised the expense of electrical energy to equivalent or more than the expense of electricity from the energy.