Prior to you sign your name to a solar panel lease on your house in Chula Vista CA 91914 you need to understand exactly what you are actually getting into. If you’re in business of offering solar leases maybe you ought to try 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 percentage of homework. You likewise may attempt Googling, “selling home with solar lease” and “solar lease vs. buy”. Read exactly what your customer’s will read when they do 30 minutes of study online prior to dedicating to a 20 year contract. Possibly you’ll now comprehend why you get numerous cancellations and why if you do not close the deal on the first consultation you’ve got nearly no chance of closing it later on. Why not alter your strategy do what’s right for the customer and get on board with a business that supplies industry leading value (cost + quality + service).
The Solar Lease in Chula Vista CA 91914 or PPA Sales Pitch generally 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 contract where 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 term of the contract you’ll be paying 2 to 3 times what you would have paid acquiring the solar system even if you factor in the interest paid on the solar loan. Many absolutely no money down solar loans are readily available. If you have the credit report to get approved for the lease you can make use of the bank’s cash to fund your solar system with absolutely no money down.
[ssvideo keyword=”Solar Contractors” title=”Solar Companies in Chula Vista”]
2. No concerns. The leasing/PPA business in Chula Vista CA 91914 is liable for all maintenance and repairs on the system.
The leasing business will certainly not clean your photovoltaic panels which is about only upkeep used on a solar system. Solar systems are incredibly low upkeep without any moving parts and have extremely long maker’s guarantees and efficiency guarantees. 25 years with a microinverter based system, that’s longer than the leasing business’ warranty. Most tier 1 solar equipment producers are larger and more solvent than the solar leasing company by many multiples. Those long service warranties are supported by a 20 year bumper to bumper service warranty from Solar Symphony.
3. Insurance coverage– go solar with a lease and the renting business insures the system.
Purchase a system and the solar system is covered under your property owner’s policy for a just 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 also get keeping track of for the life of the system, utilizing the very same monitoring devices used by the leasing company.
5. Simply sign an agreement and the renting company does everything else.
When buying a system you also just sign an agreement and the solar contractors does everything else. Distinction is the leasing companies contract is 17 pages (small print) and the solar professional’s contract is 2 pages.
6. A lease doesn’t strike your personal credit. Doesn’t impact your financial obligation 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 main concerns there are funding options for a purchase (PACE and HERO) that also don’t hit your individual credit or impact your financial obligation to earnings ratio. And those programs enable practically any property owner to go solar regardless of their credit rating.
Now for the six main downsides to a solar lease in Chula Vista CA 91914 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 purchasing solar on your roofing system! You’re just offering them a guaranteed 20 year cash flow!
2. Now you have 2 utility expenses not just one! In essence the leasing company ends up being a 2nd energy. So, sign a solar lease and now you have two energy business you have to pay monthly.
3. Most leases or PPAs lug an annual cost escalator, generally 2.9 %. So while you may be conserving cash today in a several years you won’t be.
4. You won’t be able to assert the 30 % federal tax credit and any appropriate 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 paid off you can delight in totally free electrical energy 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 problematic. Solar leases use the new owner to assume the lease and terms. If you check out any of the above you can probably see why an educated consumer would not be interested in assuming the obligations 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 actually now raised the expense of electricity to equal or more than the cost of electrical energy from the energy.