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Selling Your Home With a Solar Lease in Desert Hot Springs CA 92241

Selling Your Home With a Solar Lease in Desert Hot Springs CA 92241

Problems With Solar Lease in Desert Hot SpringsPrior to you sign your name to a solar panel lease on your home in Desert Hot Springs CA 92241 you need to comprehend exactly what you are actually getting into. If you’re in business of selling solar leases maybe 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 might attempt Googling, “selling home with solar lease” and “solar lease vs. buy”. Read exactly what your client’s will check out 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 don’t seal the deal on the first visit you’ve got nearly no opportunity of closing it later. Why not change your technique do exactly what’s right for the consumer and get on board with a company that supplies industry leading value (price + quality + service).

The Solar Lease in Desert Hot Springs CA 92241 or PPA Sales Pitch usually includes six main points. We went over each below.

1. Go Solar and Pay Nothing! Or no cash out of pocket.

Signing a 20 year agreement in which you promise to pay X hundred dollars per month is barely paying absolutely nothing. If you add up all those month-to-month payments throughout the term of the agreement 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 zero money down solar loans are readily available. If you have the credit score to qualify for the lease you can use the bank’s cash to finance your solar system with zero cash down.

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2. No concerns. The leasing/PPA business in Desert Hot Springs CA 92241 is responsible for all maintenance and repairs on the system.

The leasing company will not clean your solar panels which has to do with only upkeep used on a solar system. Solar systems are exceptionally low upkeep without any moving parts and include exceptionally long producer’s guarantees and efficiency guarantees. 25 years with a microinverter based system, that’s longer than the leasing business’ guarantee. The majority of tier 1 solar equipment makers are bigger and more solvent than the solar leasing company 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 company guarantees the system.

Purchase a system and the solar system is covered under your property owner’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 acquire a system you also get keeping an eye on for the life of the system, using the exact same monitoring devices made use of by the renting business.

5. Simply sign an agreement and the leasing company does everything else.

When purchasing a system you also simply sign a contract and the solar contractors does everything else. Distinction is the leasing companies contract is 17 pages (small print) and the solar specialist’s agreement is 2 pages.

6. A lease does not strike your individual credit. Does not affect your debt to earnings ratio.

This might be the only true benefit of the lease however it comes at an awefully high cost. If this is one of your main issues there are financing choices for a purchase (PACE and HERO) that likewise don’t hit your individual credit or affect your financial obligation to income ratio. And those programs permit virtually any property owner to go solar despite their credit score.

Now for the 6 main drawbacks to a solar lease in Desert Hot Springs CA 92241 or PPA.

1. A lease is a 20 year liability. It is not an asset or an investment in solar. The solar leasing business are purchasing solar on your roof! You’re simply providing them a guaranteed 20 year capital!

2. Now you have two utility costs not just one! In essence the renting business ends up being a second energy. So, sign a solar lease and now you have two utility companies you need to pay each month.

3. A lot of leases or PPAs bring an annual expense escalator, generally 2.9 %. So while you may be conserving cash today in a several years you will not be.

4. You won’t have the ability to claim the 30 % federal tax credit and any relevant cash rebates. You also won’t have the ability to declare 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 buy a solar system once the solar loan is settled you can enjoy complimentary electricity 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 troublesome. Solar leases use the brand-new owner to assume the lease and terms. If you read any of the above you can probably see why an informed customer would not have an interest in 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 expense of electrical power to equivalent or more than the cost of electricity from the energy.

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