Before you sign your name to a solar panel lease on your home in Corona CA 92880 you have to understand exactly what you are really getting into. If you’re in the business of offering solar leases possibly you should try Googling this, “benefits of solar lease” Read all of the page one results and see what your client’s are checking out if they do even a small amount of research. You also might try Googling, “selling home with solar lease” and “solar lease vs. purchase”. Read exactly what your customer’s will read when they do 30 minutes of research online before committing to a 20 year agreement. Maybe you’ll now understand why you get many cancellations and why if you do not close the deal on the first visit you’ve got nearly no possibility of closing it later on. Why not alter your method do exactly what’s right for the client and get on board with a company that offers market leading value (rate + quality + service).
The Solar Lease in Corona CA 92880 or PPA Sales Pitch normally consists of 6 bottom lines. We discussed 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 hardly paying nothing. If you add 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 purchasing the solar system even if you consider the interest paid on the solar loan. Lots of no cash down solar loans are readily available. If you have the credit score to get approved for the lease you can use the bank’s cash to fund your solar system with no money down.
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2. No worries. The leasing/PPA company in Corona CA 92880 is responsible for all maintenance and repairs on the system.
The leasing business will certainly not clean your solar panels which is about only upkeep required on a solar system. Solar systems are extremely low maintenance without any moving parts and include very long manufacturer’s guarantees and efficiency warranties. 25 years with a microinverter based system, that’s longer than the leasing companies’ assurance. The majority of tier 1 solar equipment makers are bigger and more financially stable than the solar leasing business by lots of multiples. Those long guarantees are supported 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 homeowner’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 purchase a system you likewise get keeping track of for the life of the system, making use of the exact same monitoring equipment used by the leasing company.
5. Simply sign a contract and the renting company does everything else.
When buying a system you also simply sign a contract and the solar contractors does everything else. Difference is the leasing business contract is 17 pages (fine print) and the solar professional’s agreement is 2 pages.
6. A lease does not strike your individual credit. Does not impact your financial obligation to earnings ratio.
This might be the only true benefit of the lease but it comes at an awefully high price. If this is among your primary concerns there are financing alternatives for a purchase (PACE and HERO) that also don’t hit your personal credit or impact your debt to income ratio. And those programs permit almost any homeowner to go solar regardless of their credit rating.
Now for the 6 major drawbacks to a solar lease in Corona CA 92880 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 investing in solar on your roof! You’re just offering them an ensured 20 year capital!
2. Now you have 2 utility bills not just one! In essence the renting company ends up being a 2nd utility. So, sign a solar lease and now you have 2 utility companies you need to pay monthly.
3. A lot of leases or PPAs carry a yearly expense escalator, normally 2.9 %. So while you may be conserving cash today in a several years you won’t be.
4. You will not have the ability to claim the 30 % federal tax credit and any appropriate cash rebates. You also won’t be able to claim any tax deductible interest on solar loan payments (HELOC or PACE).
5. You never get to complimentary power with a lease or PPA. In contrast, if you buy a solar system once the solar loan is paid off you can enjoy complimentary electrical power from the sun for 10– 15 years depending upon the length of the solar loan.
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6. Offering your house with a solar lease or PPA can be bothersome. Solar leases require the brand-new owner to presume the lease and terms. If you check out any of the above you can probably see why an informed consumer would not be interested in assuming the responsibilities of your lease. This is specifically true if the lease is 7 or more years of ages and the annual expense escalator in the lease has now raised the expense of electrical power to equivalent or more than the cost of electrical power from the utility.