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Selling Your Home With a Solar Lease in El Cajon CA 92022

Selling Your Home With a Solar Lease in El Cajon CA 92022

Problems With Solar Lease in El CajonBefore you sign your name to a solar panel lease on your house in El Cajon CA 92022 you have to comprehend exactly what you are truly getting into. If you’re in the business of offering solar leases perhaps you ought to attempt Googling this, “benefits of solar lease” Read all the page one results and see what your client’s are reading if they do even a small amount of homework. You likewise might attempt Googling, “selling home with solar lease” and “solar lease vs. buy”. Read exactly what your consumer’s will certainly check out when they do 30 minutes of research online before committing to a 20 year contract. Maybe you’ll now understand 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 chance of closing it later. Why not alter your approach do exactly what’s right for the consumer and get on board with a company that offers market leading value (price + quality + service).

The Solar Lease in El Cajon CA 92022 or PPA Sales Pitch typically consists of 6 main points. We discussed each below.

1. Go Solar and Pay Nothing! Or no money 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 accumulate all of those month-to-month payments throughout 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. Numerous no money down solar loans are offered. If you have the credit history to get the lease you can use the bank’s cash to finance your solar system with absolutely no cash down.

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2. No worries. The leasing/PPA company in El Cajon CA 92022 is liable for all repair and maintenance on the system.

The renting company will not clean your photovoltaic panels which has to do with just maintenance required on a solar system. Solar systems are extremely low maintenance with no moving parts and include very long producer’s guarantees and performance assurances. 25 years with a microinverter based system, that’s longer than the leasing companies’ guarantee. Most tier 1 solar devices manufacturers are bigger and more solvent 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– go solar with a lease and the renting business insures the system.

Purchase a system and the solar system is covered under your property owner’s policy for a simply a couple dollars per month.

4. Monitoring– the leasing business 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, utilizing the exact same monitoring devices used by the leasing business.

5. Just sign a contract and the leasing company does everything else.

When buying a system you likewise simply sign a contract and the solar professionals does everything else. Distinction is the leasing business contract is 17 pages (small print) and the solar specialist’s agreement is 2 pages.

6. A lease does not strike your personal credit. Doesn’t affect your debt to earnings ratio.

This might be the only true advantage of the lease however it comes at an awefully high cost. If this is among your major concerns there are financing options for a purchase (PACE and HERO) that likewise don’t strike your individual credit or affect your debt to income ratio. And those programs enable virtually any house owner to go solar regardless of their credit score.

Now for the 6 main drawbacks to a solar lease in El Cajon CA 92022 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 investing in solar on your roofing! You’re simply supplying them an ensured 20 year cash flow!

2. Now you have two energy costs not simply one! In essence the leasing company ends up being a 2nd utility. So, sign a solar lease and now you have two utility companies you need to pay monthly.

3. A lot of leases or PPAs bring a yearly expense escalator, normally 2.9 %. So while you might be conserving money today in a numerous years you will not be.

4. You won’t be able to declare the 30 % federal tax credit and any suitable money discounts. You also will not have the ability to assert any tax deductible interest on solar loan payments (HELOC or PACE).

5. You never ever get to complimentary power with a lease or PPA. On the other hand, if you purchase a solar system once the solar loan is settled you can delight in free electrical energy 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 require the brand-new owner to presume the lease and terms. If you read any of the above you can probably see why an educated consumer would not be interested in assuming the responsibilities of your lease. This is particularly real if the lease is 7 or more years of ages and the annual expense escalator in the lease has now raised the cost of electricity to equal or more than the expense of electrical power from the utility.

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