Prior to you sign your name to a solar panel lease on your house in Desert Center CA 92239 you need to understand what you are actually getting into. If you’re in business of selling solar leases maybe you need to attempt 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 try Googling, “selling home with solar lease” and “solar lease vs. buy”. Read exactly what your consumer’s will read when they do 30 minutes of research online prior to committing to a 20 year contract. Perhaps you’ll now comprehend why you get a lot of cancellations and why if you do not close the deal on the first visit you’ve got virtually no chance of closing it later. Why not alter your strategy do what’s right for the customer and get on board with a company that supplies industry leading value (price + quality + service).
The Solar Lease in Desert Center CA 92239 or PPA Sales Pitch generally includes six 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 promise to pay X hundred dollars per month is barely paying nothing. If you build up all those monthly 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 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 qualify for the lease you can make use of the bank’s cash to fund your solar system with absolutely no money down.
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2. No fears. The leasing/PPA business in Desert Center CA 92239 is accountable for all maintenance and repairs on the system.
The leasing business will not clean your photovoltaic panels which is about only upkeep used on a solar system. Solar systems are extremely low upkeep without any moving parts and have very long producer’s guarantees and performance warranties. 25 years with a microinverter based system, that’s longer than the leasing companies’ warranty. Most tier 1 solar devices manufacturers are larger 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 service warranty 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 house 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 an eye on for the life of the system, using the same monitoring equipment used by the leasing business.
5. Simply sign a contract and the leasing business does everything else.
When purchasing a system you also just sign a contract and the solar professionals does everything else. Difference is the leasing business contract is 17 pages (small print) and the solar service provider’s contract is 2 pages.
6. A lease does not hit your personal credit. Does not affect your debt to earnings ratio.
This may be the only true benefit of the lease but it comes at an awefully high price. If this is one of your major concerns there are financing options for a purchase (PACE and HERO) that likewise don’t hit your individual credit or influence your debt to income ratio. And those programs allow almost any property owner to go solar regardless of their credit score.
Now for the six major downsides to a solar lease in Desert Center CA 92239 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 buying solar on your roofing system! You’re simply supplying them an ensured 20 year cash flow!
2. Now you have 2 utility costs not just one! In essence the leasing business ends up being a second energy. So, sign a solar lease and now you have 2 utility business you need to pay each month.
3. Many leases or PPAs carry a yearly cost escalator, usually 2.9 %. So while you may be conserving cash today in a numerous years you will not be.
4. You won’t have the ability to claim the 30 % federal tax credit and any suitable cash rebates. You also won’t have the ability 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. On the other hand, if you purchase a solar system once the solar loan is settled you can delight in totally free electrical power from the sun for 10– 15 years depending on 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 use the new owner to presume the lease and terms. If you check out any of the above you can probably see why an enlightened consumer would not have an interest in assuming the obligations of your lease. This is specifically real if the lease is 7 or more years old and the annual expense escalator in the lease has now raised the expense of electrical energy to equivalent or more than the cost of electrical power from the utility.