Prior to you sign your name to a solar panel lease on your home in Chula Vista CA 91911 you need to understand exactly what you are actually getting into. If you’re in the business of selling solar leases perhaps you need to 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 small amount of research. You also might try Googling, “selling home with solar lease” and “solar lease vs. buy”. Read exactly what your customer’s will check out when they do 30 minutes of study online prior to committing to a 20 year contract. Maybe you’ll now comprehend why you get numerous cancellations and why if you don’t seal the deal on the first visit you’ve got almost no opportunity of closing it later. Why not alter your strategy do what’s right for the client and get on board with a company that offers industry leading value (cost + quality + service).
The Solar Lease in Chula Vista CA 91911 or PPA Sales Pitch normally consists of 6 main points. We talked about each below.
1. Go Solar and Pay Nothing! Or no cash out of pocket.
Signing a 20 year contract in which you assure to pay X hundred dollars per month is hardly paying nothing. If you build up all of those month-to-month payments throughout 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. Many absolutely no cash down solar loans are readily available. If you have the credit score to qualify for the lease you can make use of the bank’s cash to fund your solar system with absolutely no cash down.
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2. No fears. The leasing/PPA company in Chula Vista CA 91911 is accountable for all maintenance and repairs on the system.
The leasing business will not clean your solar panels which has to do with just maintenance required on a solar system. Solar systems are extremely low upkeep with no moving parts and include incredibly long producer’s guarantees and efficiency assurances. 25 years with a microinverter based system, that’s longer than the leasing business’ guarantee. The majority of tier 1 solar devices manufacturers are bigger and more financially stable than the solar leasing business by lots of multiples. Those long guarantees are backed up by a 20 year bumper to bumper guarantee 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 house owner’s policy for a just a couple dollars per month.
4. Tracking– the renting company 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, using the exact same monitoring devices used by the leasing business.
5. Just sign an agreement and the leasing company does everything else.
When purchasing a system you likewise simply sign a contract and the solar professionals does everything else. Distinction is the leasing business agreement is 17 pages (small print) and the solar professional’s contract is 2 pages.
6. A lease doesn’t hit your individual credit. Doesn’t impact your debt to income ratio.
This might be the only real advantage of the lease but it comes at an awefully high price. If this is among your primary issues there are financing choices for a purchase (PACE and HERO) that likewise do not strike your individual credit or influence your debt to income ratio. And those programs enable almost any homeowner to go solar despite their credit score.
Now for the 6 primary disadvantages to a solar lease in Chula Vista CA 91911 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 buying solar on your roofing system! You’re simply supplying them an ensured 20 year capital!
2. Now you have two utility bills not simply one! In essence the renting company becomes a 2nd energy. So, sign a solar lease and now you have two energy companies you have to pay each month.
3. Most leases or PPAs carry a yearly expense escalator, normally 2.9 %. So while you may be saving cash today in a several years you won’t be.
4. You will not be able to declare the 30 % federal tax credit and any relevant money refunds. You likewise won’t be able 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. On the other hand, if you purchase 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. Selling your home with a solar lease or PPA can be problematic. Solar leases use the new owner to assume the lease and terms. If you check out any of the above you can most likely see why an enlightened customer would not be interested in assuming the commitments of your lease. This is particularly real if the lease is 7 or more years old and the annual cost escalator in the lease has now raised the cost of electrical power to equal or more than the expense of electrical energy from the utility.