Prior to you sign your name to a solar panel lease on your home in Descanso CA 91916 you need to understand exactly what you are really getting into. If you’re in the business of offering solar leases perhaps you need to try Googling this, “benefits of solar lease” Read all the page one results and see what your customer’s are checking out if they do even a percentage of research. You likewise may try Googling, “selling home with solar lease” and “solar lease vs. buy”. Read what your consumer’s will certainly read when they do 30 minutes of research online prior to dedicating to a 20 year contract. Perhaps you’ll now understand why you get a lot of cancellations and why if you don’t close the deal on the first appointment you’ve got nearly no chance of closing it later on. Why not alter your method do what’s right for the consumer and get on board with a business that provides industry leading value (price + quality + service).
The Solar Lease in Descanso CA 91916 or PPA Sales Pitch typically consists of 6 main points. We talked about each below.
1. Go Solar and Pay Nothing! Or no money out of pocket.
Signing a 20 year contract in which you guarantee to pay X hundred dollars per month is hardly paying nothing. If you accumulate 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 purchasing the solar system even if you consider the interest paid on the solar loan. Numerous zero 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 fund your solar system with zero cash down.
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2. No concerns. The leasing/PPA company in Descanso CA 91916 is liable for all maintenance and repairs on the system.
The leasing business will certainly not clean your solar panels which is about only maintenance needed on a solar system. Solar systems are extremely low upkeep without any moving parts and come with incredibly long manufacturer’s service warranties and efficiency assurances. 25 years with a microinverter based system, that’s longer than the leasing companies’ assurance. Many tier 1 solar equipment manufacturers are bigger and more solvent than the solar leasing company by lots of multiples. Those long guarantees are backed up by a 20 year bumper to bumper service warranty from Solar Symphony.
3. Insurance– 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 simply a couple dollars per month.
4. Tracking– the leasing company monitors your system for the life of the lease/PPA.
When you buy a system you likewise get keeping track of for the life of the system, using the very same tracking equipment used by the leasing business.
5. Simply sign an agreement and the leasing company does everything else.
When purchasing a system you likewise simply sign an agreement and the solar service providers does everything else. Difference is the leasing business 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 might be the only true advantage of the lease but it comes at an awefully high price. If this is among your major concerns there are funding choices for a purchase (PACE and HERO) that also don’t hit your personal credit or affect your financial obligation to income ratio. And those programs enable virtually any homeowner to go solar despite their credit rating.
Now for the 6 major drawbacks to a solar lease in Descanso CA 91916 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 buying solar on your roofing! You’re simply providing them a guaranteed 20 year cash flow!
2. Now you have 2 utility bills not just one! In essence the leasing business ends up being a second utility. So, sign a solar lease and now you have 2 energy companies you need to pay each month.
3. Most leases or PPAs lug an annual expense escalator, generally 2.9 %. So while you may be conserving money today in a numerous years you will not be.
4. You won’t be able to assert the 30 % federal tax credit and any suitable money rebates. You also won’t be able to assert any tax deductible interest on solar loan payments (HELOC or PACE).
5. You never get to complimentary power with a lease or PPA. On the other hand, if you purchase a solar system once the solar loan is settled you can take pleasure in complimentary electrical power from the sun for 10– 15 years depending on 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 use the brand-new owner to presume the lease and terms. If you check out any of the above you can most likely see why an informed consumer would not be interested in presuming the obligations of your lease. This is specifically true if the lease is 7 or more years of ages and the annual cost escalator in the lease has now raised the cost of electrical energy to equivalent or more than the cost of electrical power from the energy.