Prior to you sign your name to a solar panel lease on your home in Costa Mesa CA 92628 you need to comprehend exactly what you are truly getting into. If you’re in the business of selling solar leases perhaps you ought to try Googling this, “benefits of solar lease” Read all of the page one results and see exactly what your customer’s are checking out if they do even a percentage of research. You also may attempt Googling, “selling home with solar lease” and “solar lease vs. purchase”. Read exactly what your consumer’s will read when they do 30 minutes of research online before dedicating to a 20 year agreement. Perhaps you’ll now comprehend why you get numerous cancellations and why if you do not seal the deal on the first visit you’ve got nearly no possibility of closing it later on. Why not alter your strategy do what’s right for the client and get on board with a business that provides industry leading value (rate + quality + service).
The Solar Lease in Costa Mesa CA 92628 or PPA Sales Pitch usually consists of 6 bottom lines. We went over each below.
1. Go Solar and Pay Nothing! Or no money out of pocket.
Signing a 20 year agreement in which you guarantee to pay X hundred dollars per month is barely paying nothing. If you accumulate all of those month-to-month payments during the term of the agreement you’ll be paying 2 to 3 times exactly what you would have paid buying the solar system even if you factor in the interest paid on the solar loan. Many no cash down solar loans are readily available. If you have the credit report to get approved for the lease you can use the bank’s money to finance your solar system with zero cash down.
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2. No concerns. The leasing/PPA company in Costa Mesa CA 92628 is liable for all maintenance and repairs on the system.
The renting company will certainly not clean your photovoltaic panels which has to do with only maintenance required on a solar system. Solar systems are exceptionally low upkeep without any moving parts and have exceptionally long producer’s service warranties and efficiency guarantees. 25 years with a microinverter based system, that’s longer than the leasing business’ assurance. Most tier 1 solar devices makers 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 renting company insures 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. Tracking– the renting 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 utilized by the leasing business.
5. Just sign an agreement and the leasing business does everything else.
When purchasing a system you also simply sign a contract and the solar specialists does everything else. Distinction is the leasing companies contract is 17 pages (small print) and the solar contractor’s agreement is 2 pages.
6. A lease doesn’t strike your personal credit. Doesn’t affect your debt to income ratio.
This may be the only real advantage of the lease however it comes at an awefully high cost. If this is among your primary concerns there are funding options for a purchase (PACE and HERO) that also don’t strike your personal credit or influence your debt to earnings ratio. And those programs permit practically 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 92628 or PPA.
1. A lease is a 20 year liability. It is not a possession or an investment in solar. The solar leasing business are investing in solar on your roof! You’re simply providing them a guaranteed 20 year capital!
2. Now you have two energy costs not just one! In essence the leasing business ends up being a 2nd energy. So, sign a solar lease and now you have two energy business you need to pay each month.
3. Most leases or PPAs carry a yearly expense escalator, typically 2.9 %. So while you may be conserving money today in a numerous years you won’t be.
4. You won’t have the ability to claim the 30 % federal tax credit and any relevant cash discounts. You likewise won’t be able to claim any tax deductible interest on solar loan payments (HELOC or PACE).
5. You never ever get to free power with a lease or PPA. In contrast, if you buy a solar system once the solar loan is paid off you can get complimentary electrical energy 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 bothersome. Solar leases require 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 want assuming the obligations of your lease. This is specifically true if the lease is 7 or more years old and the annual cost escalator in the lease has actually now raised the cost of electricity to equal or more than the cost of electrical energy from the utility.