Prior to you sign your name to a solar panel lease on your house in Costa Mesa CA 92626 you need to comprehend what you are truly getting into. If you’re in business of offering solar leases possibly you should attempt 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 research. You likewise might try Googling, “selling home with solar lease” and “solar lease vs. buy”. Read what your client’s will certainly check out when they do 30 minutes of study online prior to committing to a 20 year agreement. Maybe you’ll now understand why you get many cancellations and why if you don’t seal the deal on the very first appointment you’ve got almost no chance of closing it later on. Why not alter your technique do what’s right for the customer and get on board with a company that offers industry leading value (price + quality + service).
The Solar Lease in Costa Mesa CA 92626 or PPA Sales Pitch normally includes 6 main points. We went over each below.
1. Go Solar and Pay Nothing! Or no cash out of pocket.
Signing a 20 year contract where you promise to pay X hundred dollars per month is barely paying nothing. If you add up all of those monthly payments throughout the term of the contract you’ll be paying 2 to 3 times exactly what you would have paid buying the solar system even if you consider the interest paid on the solar loan. Many absolutely no money down solar loans are available. If you have the credit history to qualify for the lease you can utilize the bank’s money to finance your solar system with no cash down.
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2. No fears. The leasing/PPA company in Costa Mesa CA 92626 is responsible for all repair and maintenance on the system.
The renting company will not clean your solar panels which has to do with just upkeep required on a solar system. Solar systems are extremely low upkeep without any moving parts and include incredibly long producer’s guarantees and performance guarantees. 25 years with a microinverter based system, that’s longer than the leasing business’ assurance. A lot of tier 1 solar devices manufacturers are bigger and more financially stable than the solar leasing business by lots of multiples. Those long warranties are backed up by a 20 year bumper to bumper warranty from Solar Symphony.
3. Insurance coverage– go solar with a lease and the leasing business insures 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. Monitoring– the renting company monitors your system for the life of the lease/PPA.
When you buy a system you likewise get keeping an eye on for the life of the system, utilizing the very same monitoring devices made use of by the leasing business.
5. Just sign a contract and the leasing business does everything else.
When buying a system you likewise just sign a contract and the solar service providers does everything else. Distinction is the leasing companies agreement is 17 pages (fine print) and the solar service provider’s agreement is 2 pages.
6. A lease doesn’t strike your individual credit. Does not affect your debt to earnings ratio.
This may be the only real advantage of the lease however it comes at an awefully high cost. If this is among your major issues there are financing choices for a purchase (PACE and HERO) that likewise do not hit your individual credit or affect your financial obligation to income ratio. And those programs enable virtually any property owner to go solar no matter their credit rating.
Now for the 6 major downsides to a solar lease in Costa Mesa CA 92626 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! You’re simply supplying them an ensured 20 year cash flow!
2. Now you have two energy bills not simply one! In essence the leasing company ends up being a 2nd utility. So, sign a solar lease and now you have 2 energy companies you have to pay monthly.
3. Many leases or PPAs bring an annual expense escalator, usually 2.9 %. So while you might be saving money today in a several years you won’t be.
4. You won’t have the ability to claim the 30 % federal tax credit and any appropriate money discounts. You likewise will not be able to claim any tax deductible interest on solar loan payments (HELOC or PACE).
5. You never ever get to complimentary power with a lease or PPA. On the other hand, if you buy a solar system once the solar loan is settled you can get free electrical energy from the sun for 10– 15 years depending upon the length of the solar loan.
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6. Selling your home with a solar lease or PPA can be bothersome. Solar leases require the brand-new owner to assume the lease and terms. If you read any of the above you can probably 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 old and the yearly expense escalator in the lease has now raised the cost of electricity to equal or more than the expense of electrical power from the energy.