Before you sign your name to a solar panel lease on your home in Dulzura CA 91917 you need to comprehend exactly what you are actually getting into. If you’re in the business of offering solar leases possibly you ought to try Googling this, “benefits of solar lease” Read all the page one results and see what your client’s are checking out if they do even a small amount of homework. You also may attempt Googling, “selling home with solar lease” and “solar lease vs. purchase”. Read exactly what your consumer’s will check out when they do 30 minutes of study online prior to committing to a 20 year contract. Perhaps you’ll now comprehend why you get so many cancellations and why if you don’t close the deal on the very first consultation you’ve got almost no possibility of closing it later on. Why not change your strategy do what’s right for the client and get on board with a business that provides industry leading value (cost + quality + service).
The Solar Lease in Dulzura CA 91917 or PPA Sales Pitch usually consists of six bottom lines. We talked about 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 nothing. If you add up all of those monthly payments during 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 absolutely no money down solar loans are readily available. If you have the credit report to get the lease you can use the bank’s money to fund your solar system with absolutely no cash down.
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2. No worries. The leasing/PPA company in Dulzura CA 91917 is accountable for all repair and maintenance on the system.
The leasing business will not clean your solar panels which is about just upkeep used on a solar system. Solar systems are very low maintenance with no moving parts and come with very long producer’s service warranties and performance guarantees. 25 years with a microinverter based system, that’s longer than the leasing companies’ guarantee. Most tier 1 solar equipment producers are bigger and more financially stable than the solar leasing business by many multiples. Those long warranties are backed up by a 20 year bumper to bumper guarantee from Solar Symphony.
3. Insurance coverage– go solar with a lease and the leasing company insures 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. Monitoring– the leasing business 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, using the exact same tracking equipment made use of by the leasing company.
5. Simply sign a contract and the renting business does everything else.
When purchasing a system you likewise simply sign a contract and the solar specialists does everything else. Difference is the leasing business contract is 17 pages (fine print) and the solar service provider’s agreement is 2 pages.
6. A lease doesn’t hit your personal credit. Doesn’t impact your debt to income ratio.
This may be the only real advantage of the lease however it comes at an awefully high rate. If this is one of your major issues there are financing alternatives for a purchase (PACE and HERO) that likewise do not hit your personal credit or influence your financial obligation to earnings ratio. And those programs permit nearly any house owner to go solar regardless of their credit score.
Now for the 6 major disadvantages to a solar lease in Dulzura CA 91917 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 investing in solar on your roof! You’re just providing them a guaranteed 20 year capital!
2. Now you have 2 utility expenses not simply one! In essence the leasing company becomes a 2nd utility. So, sign a solar lease and now you have 2 utility companies you need to pay monthly.
3. Many leases or PPAs carry a yearly expense escalator, normally 2.9 %. So while you might be saving money today in a numerous years you won’t be.
4. You won’t be able to declare the 30 % federal tax credit and any appropriate cash rebates. You also won’t have the ability to assert 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 enjoy complimentary electricity 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 troublesome. Solar leases require the brand-new owner to assume the lease and terms. If you check out any of the above you can most likely see why an educated consumer would not want presuming the obligations of your lease. This is particularly true if the lease is 7 or more years old and the yearly expense escalator in the lease has actually now raised the cost of electrical energy to equal or more than the cost of electrical power from the utility.