Before you sign your name to a solar panel lease on your home in Chula Vista CA 91912 you have to comprehend exactly what you are really getting into. If you’re in the business of selling solar leases perhaps you need to try Googling this, “benefits of solar lease” Read all of the page one results and see exactly what your customer’s are reading if they do even a percentage of homework. You also might try Googling, “selling home with solar lease” and “solar lease vs. buy”. Read what your client’s will certainly read when they do 30 minutes of study online prior to committing to a 20 year contract. Perhaps you’ll now understand why you get many cancellations and why if you do not close the deal on the very first visit you’ve got virtually no opportunity of closing it later. Why not change your strategy do exactly what’s right for the customer and get on board with a business that offers market leading value (cost + quality + service).
The Solar Lease in Chula Vista CA 91912 or PPA Sales Pitch usually includes 6 main points. We went over each below.
1. Go Solar and Pay Nothing! Or no money out of pocket.
Signing a 20 year agreement where you guarantee to pay X hundred dollars per month is barely paying nothing. If you build up all those monthly payments during the term of the agreement you’ll be paying 2 to 3 times what you would have paid buying the solar system even if you consider the interest paid on the solar loan. Many zero money down solar loans are available. If you have the credit history to get the lease you can use the bank’s cash to finance your solar system with zero cash down.
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2. No fears. The leasing/PPA business in Chula Vista CA 91912 is liable for all maintenance and repairs on the system.
The renting company will certainly not clean your solar panels which is about just upkeep required on a solar system. Solar systems are extremely low maintenance with no moving parts and include very long producer’s warranties and performance assurances. 25 years with a microinverter based system, that’s longer than the leasing companies’ warranty. A lot of tier 1 solar devices producers are bigger and more financially stable than the solar leasing business by numerous multiples. Those long service warranties are backed up by a 20 year bumper to bumper guarantee from Solar Symphony.
3. Insurance– go solar with a lease and the leasing 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 leasing company 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, making use of the exact same monitoring devices used by the leasing company.
5. Just sign a contract and the renting business does everything else.
When buying a system you likewise simply sign an agreement and the solar specialists does everything else. Distinction is the leasing companies 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 affect your debt to earnings ratio.
This may be the only true benefit of the lease but it comes at an awefully high rate. If this is one of your major concerns there are funding alternatives for a purchase (PACE and HERO) that also don’t strike your individual credit or affect your debt to earnings ratio. And those programs permit practically any property owner to go solar no matter their credit score.
Now for the 6 major disadvantages to a solar lease in Chula Vista CA 91912 or PPA.
1. A lease is a 20 year liability. It is not an asset or an investment in solar. The solar leasing business are buying solar on your roofing! You’re simply supplying them a guaranteed 20 year capital!
2. Now you have two energy costs not just one! In essence the leasing company becomes a 2nd energy. So, sign a solar lease and now you have 2 utility business you need to pay monthly.
3. The majority of leases or PPAs lug a yearly 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 also won’t have the ability to claim any tax deductible interest on solar loan payments (HELOC or PACE).
5. You never ever 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 take pleasure in free electricity 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 check out any of the above you can probably see why an enlightened consumer would not have an interest in presuming the commitments of your lease. This is particularly true if the lease is 7 or more years old and the yearly cost escalator in the lease has now raised the cost of electrical power to equivalent or more than the cost of electricity from the energy.