Prior to you sign your name to a solar panel lease on your house in El Cajon CA 92021 you need to understand exactly what you are truly getting into. If you’re in business of offering solar leases possibly you need 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 research. You likewise may try Googling, “selling home with solar lease” and “solar lease vs. purchase”. Read exactly what your customer’s will certainly read when they do 30 minutes of research online before dedicating to a 20 year contract. Possibly you’ll now understand why you get so many cancellations and why if you do not close the deal on the first visit you’ve got almost no chance of closing it later. Why not alter 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 El Cajon CA 92021 or PPA Sales Pitch normally includes six main points. We talked about each below.
1. Go Solar and Pay Nothing! Or no cash out of pocket.
Signing a 20 year agreement where you assure to pay X hundred dollars per month is hardly paying nothing. If you accumulate all those regular monthly payments during the term of the contract you’ll be paying 2 to 3 times what you would have paid buying the solar system even if you factor in the interest paid on the solar loan. Lots of zero cash down solar loans are offered. If you have the credit history to qualify for the lease you can make use of the bank’s money to finance your solar system with absolutely no money down.
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2. No fears. The leasing/PPA business in El Cajon CA 92021 is liable for all maintenance and repairs on the system.
The renting company will not clean your solar panels which is about just upkeep needed on a solar system. Solar systems are exceptionally low upkeep with no moving parts and come with exceptionally long manufacturer’s service warranties and efficiency warranties. 25 years with a microinverter based system, that’s longer than the leasing companies’ warranty. The majority of tier 1 solar equipment manufacturers are bigger and more financially stable than the solar leasing business by numerous multiples. Those long guarantees are supported by a 20 year bumper to bumper guarantee from Solar Symphony.
3. Insurance– go solar with a lease and the renting 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. Tracking– the leasing business monitors your system for the life of the lease/PPA.
When you purchase a system you also get keeping track of for the life of the system, using the same tracking devices utilized by the leasing company.
5. Simply sign a contract and the leasing company does everything else.
When acquiring a system you also simply sign an agreement and the solar specialists does everything else. Difference is the leasing business contract is 17 pages (fine print) and the solar service provider’s contract is 2 pages.
6. A lease doesn’t strike your personal credit. Doesn’t affect your financial obligation to income ratio.
This may be the only real benefit of the lease however it comes at an awefully high cost. If this is among your major concerns there are financing alternatives for a purchase (PACE and HERO) that likewise do not strike your individual credit or impact your debt to earnings ratio. And those programs allow almost any property owner to go solar no matter their credit rating.
Now for the six primary disadvantages to a solar lease in El Cajon CA 92021 or PPA.
1. A lease is a 20 year liability. It is not a possession or a financial investment in solar. The solar leasing companies are purchasing solar on your roofing! You’re simply providing them a guaranteed 20 year capital!
2. Now you have 2 utility bills not just one! In essence the leasing business becomes a 2nd utility. So, sign a solar lease and now you have 2 energy companies you need to pay monthly.
3. Most leases or PPAs bring a yearly cost escalator, generally 2.9 %. So while you may be conserving cash today in a numerous years you won’t be.
4. You won’t be able to claim the 30 % federal tax credit and any relevant money refunds. You likewise will not have the ability to declare any tax deductible interest on solar loan payments (HELOC or PACE).
5. You never get to complimentary power with a lease or PPA. In contrast, if you acquire a solar system once the solar loan is paid off you can get totally free electricity from the sun for 10– 15 years depending upon the length of the solar loan.
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6. Selling your house with a solar lease or PPA can be bothersome. Solar leases need the new owner to assume the lease and terms. If you read any of the above you can most likely see why an educated customer would not want presuming the responsibilities of your lease. This is particularly real if the lease is 7 or more years of ages and the yearly expense escalator in the lease has now raised the cost of electricity to equivalent or more than the expense of electricity from the energy.