Prior to you sign your name to a solar panel lease on your house in Chula Vista CA 91913 you need to understand what you are actually getting into. If you’re in the business of selling solar leases perhaps you must attempt Googling this, “benefits of solar lease” Read all the page one results and see exactly what your customer’s are checking out if they do even a percentage of research. You likewise might try Googling, “selling home with solar lease” and “solar lease vs. buy”. Read exactly what your consumer’s will check out when they do 30 minutes of research online before committing to a 20 year agreement. Perhaps you’ll now comprehend why you get many cancellations and why if you don’t close the deal on the first consultation you’ve got practically no opportunity of closing it later on. Why not alter your method do what’s right for the customer and get on board with a company that provides industry leading value (price + quality + service).
The Solar Lease in Chula Vista CA 91913 or PPA Sales Pitch typically consists of six bottom lines. We discussed each below.
1. Go Solar and Pay Nothing! Or no money out of pocket.
Signing a 20 year agreement where you promise to pay X hundred dollars per month is barely paying absolutely nothing. If you add up all of those monthly payments throughout the term of the agreement you’ll be paying 2 to 3 times exactly what you would have paid acquiring the solar system even if you consider the interest paid on the solar loan. Numerous zero cash down solar loans are available. If you have the credit score to get the lease you can utilize the bank’s cash to fund your solar system with zero money down.
[ssvideo keyword=”Solar Companies” title=”Solar Companies in Chula Vista”]
2. No fears. The leasing/PPA business in Chula Vista CA 91913 is liable for all repair and maintenance on the system.
The leasing business will not clean your solar panels which is about only maintenance needed on a solar system. Solar systems are extremely low maintenance with no moving parts and come with incredibly long manufacturer’s service warranties and efficiency warranties. 25 years with a microinverter based system, that’s longer than the leasing companies’ warranty. Most tier 1 solar equipment manufacturers are larger and more solvent than the solar leasing company by many multiples. Those long guarantees are backed up by a 20 year bumper to bumper service warranty from Solar Symphony.
3. Insurance coverage– 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 just a couple dollars per month.
4. Tracking– the renting business monitors your system for the life of the lease/PPA.
When you acquire a system you likewise get monitoring for the life of the system, utilizing the same monitoring devices used by the leasing business.
5. Just sign a contract and the leasing business does everything else.
When purchasing a system you also just sign an agreement and the solar professionals does everything else. Distinction is the leasing business agreement is 17 pages (small print) and the solar professional’s agreement is 2 pages.
6. A lease doesn’t hit your individual credit. Doesn’t influence your debt to income ratio.
This may be the only real benefit of the lease however it comes at an awefully high cost. If this is among your primary concerns there are financing alternatives for a purchase (PACE and HERO) that likewise do not hit your individual credit or influence your debt to earnings ratio. And those programs permit almost any house owner to go solar despite their credit rating.
Now for the 6 primary downsides to a solar lease in Chula Vista CA 91913 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 investing in solar on your roofing system! You’re simply providing them a guaranteed 20 year capital!
2. Now you have two energy costs not simply one! In essence the renting business becomes a 2nd utility. So, sign a solar lease and now you have two utility business you need to pay each month.
3. Most leases or PPAs lug an annual expense escalator, generally 2.9 %. So while you might be conserving cash today in a several years you will not be.
4. You won’t have the ability to assert the 30 % federal tax credit and any suitable cash discounts. You also will not have the ability to assert 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 paid off you can enjoy complimentary electricity from the sun for 10– 15 years depending on the length of the solar loan.
[google-map location=”Chula Vista CA”]
6. Selling your home with a solar lease or PPA can be troublesome. Solar leases need the brand-new owner to assume the lease and terms. If you check out any of the above you can most likely see why an enlightened consumer would not have an interest in presuming the obligations of your lease. This is especially true if the lease is 7 or more years of ages and the yearly expense escalator in the lease has now raised the cost of electrical power to equal or more than the cost of electrical power from the utility.