Before you sign your name to a solar panel lease on your house in East Irvine CA 92650 you need to comprehend what you are actually getting into. If you’re in the business of offering solar leases perhaps you need to attempt 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 homework. You also 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 study online prior to committing to a 20 year contract. Possibly you’ll now comprehend why you get numerous cancellations and why if you don’t seal the deal on the first visit you’ve got virtually no chance of closing it later. Why not alter your method do exactly what’s right for the consumer and get on board with a company that provides market leading value (cost + quality + service).
The Solar Lease in East Irvine CA 92650 or PPA Sales Pitch usually includes 6 bottom lines. We discussed each below.
1. Go Solar and Pay Nothing! Or no money out of pocket.
Signing a 20 year contract where you assure to pay X hundred dollars per month is barely paying nothing. If you add up all those month-to-month 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. Many absolutely no cash down solar loans are offered. If you have the credit score to get approved for the lease you can use the bank’s money to fund your solar system with absolutely no money down.
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2. No concerns. The leasing/PPA business in East Irvine CA 92650 is accountable for all maintenance and repairs on the system.
The renting company will not clean your photovoltaic panels which has to do with only maintenance used on a solar system. Solar systems are exceptionally low maintenance with no moving parts and have exceptionally long maker’s guarantees and efficiency assurances. 25 years with a microinverter based system, that’s longer than the leasing companies’ guarantee. The majority of tier 1 solar equipment makers are larger and more solvent than the solar leasing company by lots of multiples. Those long service warranties are supported by a 20 year bumper to bumper 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 homeowner’s policy for a simply a couple dollars per month.
4. Monitoring– the renting business monitors your system for the life of the lease/PPA.
When you buy a system you also get keeping track of for the life of the system, making use of the same tracking equipment used by the renting company.
5. Simply sign an agreement and the renting business does everything else.
When acquiring a system you also simply sign an agreement and the solar specialists does everything else. Distinction is the leasing companies contract is 17 pages (fine print) and the solar professional’s contract is 2 pages.
6. A lease doesn’t strike your personal credit. Does not affect your debt to earnings ratio.
This might be the only true benefit of the lease but it comes at an awefully high cost. If this is one of your main issues there are funding alternatives for a purchase (PACE and HERO) that also do not hit your personal credit or impact your financial obligation to earnings ratio. And those programs enable virtually any property owner to go solar regardless of their credit rating.
Now for the six main disadvantages to a solar lease in East Irvine CA 92650 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 purchasing solar on your roof! You’re simply providing them an ensured 20 year capital!
2. Now you have 2 utility bills 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 have to pay each month.
3. The majority of leases or PPAs bring an annual cost escalator, normally 2.9 %. So while you might be saving money today in a several years you won’t be.
4. You will not be able to assert the 30 % federal tax credit and any applicable cash refunds. You also won’t be able to declare any tax deductible interest on solar loan payments (HELOC or PACE).
5. You never ever get to totally free power with a lease or PPA. In contrast, if you buy a solar system once the solar loan is settled you can enjoy complimentary electrical power 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 problematic. Solar leases require the new owner to presume the lease and terms. If you check out any of the above you can probably see why an informed consumer would not have an interest in presuming the responsibilities of your lease. This is specifically real if the lease is 7 or more years old and the yearly cost escalator in the lease has now raised the expense of electricity to equivalent or more than the cost of electrical energy from the energy.