Prior to you sign your name to a solar panel lease on your home in El Cajon CA 92021 you have to understand what you are really getting into. If you’re in business of offering solar leases maybe you ought to attempt Googling this, “benefits of solar lease” Read all of the page one results and see exactly what your consumer’s are reading if they do even a percentage of homework. You also 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 study online before dedicating to a 20 year contract. Maybe you’ll now understand why you get a lot of cancellations and why if you don’t close the deal on the first appointment you’ve got practically no opportunity of closing it later on. Why not alter your method do exactly what’s right for the consumer and get on board with a business that offers industry leading value (price + quality + service).
The Solar Lease in El Cajon CA 92021 or PPA Sales Pitch generally 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 guarantee to pay X hundred dollars per month is hardly paying nothing. If you build up all those regular monthly payments during the regard to the agreement you’ll be paying 2 to 3 times exactly what you would have paid purchasing the solar system even if you factor in the interest paid on the solar loan. Lots of no money down solar loans are readily available. If you have the credit history to get the lease you can make use of the bank’s cash 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 accountable for all repair and maintenance on the system.
The leasing business will not clean your solar panels which is about just upkeep required on a solar system. Solar systems are very low upkeep without any moving parts and come with exceptionally long producer’s service warranties and efficiency guarantees. 25 years with a microinverter based system, that’s longer than the leasing companies’ warranty. The majority of tier 1 solar equipment manufacturers are larger and more solvent than the solar leasing business by lots of multiples. Those long guarantees are supported by a 20 year bumper to bumper warranty from Solar Symphony.
3. Insurance– go solar with a lease and the leasing business insures the system.
Purchase a system and the solar system is covered under your house owner’s policy for a simply a couple dollars per month.
4. Monitoring– the renting company monitors your system for the life of the lease/PPA.
When you buy a system you likewise get keeping track of for the life of the system, using the very same monitoring devices made use of by the renting business.
5. Simply sign a contract and the renting business does everything else.
When acquiring a system you likewise simply sign an agreement and the solar specialists does everything else. Difference is the leasing companies agreement is 17 pages (small print) and the solar service provider’s agreement is 2 pages.
6. A lease does not strike your personal credit. Does not influence your debt to income ratio.
This may be the only real benefit of the lease but it comes at an awefully high cost. If this is among your primary concerns there are financing options for a purchase (PACE and HERO) that likewise do not strike your personal credit or affect your financial obligation to earnings ratio. And those programs allow almost any house owner to go solar no matter their credit score.
Now for the 6 major 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 an investment in solar. The solar leasing companies are buying solar on your roofing! You’re just offering them an ensured 20 year cash flow!
2. Now you have two utility costs not just one! In essence the renting company becomes a 2nd energy. So, sign a solar lease and now you have 2 energy companies you have to pay monthly.
3. A lot of leases or PPAs lug an annual expense escalator, generally 2.9 %. So while you may be conserving money today in a numerous years you won’t be.
4. You won’t have the ability to declare the 30 % federal tax credit and any appropriate money refunds. You likewise won’t have the ability to claim any tax deductible interest on solar loan payments (HELOC or PACE).
5. You never get to free power with a lease or PPA. On the other hand, if you acquire a solar system once the solar loan is settled you can get free electricity from the sun for 10– 15 years depending on the length of the solar loan.
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6. Selling your house with a solar lease or PPA can be troublesome. 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 enlightened consumer would not have an interest in presuming the responsibilities of your lease. This is specifically true if the lease is 7 or more years old and the yearly cost escalator in the lease has actually now raised the expense of electrical power to equivalent or more than the cost of electrical energy from the utility.