Before you sign your name to a solar panel lease on your house in Encinitas CA 92024 you need to understand exactly what you are actually getting into. If you’re in the business of selling solar leases possibly you ought to attempt Googling this, “benefits of solar lease” Read all of the page one results and see what your consumer’s are checking out if they do even a percentage of homework. You also may attempt Googling, “selling home with solar lease” and “solar lease vs. purchase”. Read what your client’s will check out when they do 30 minutes of study online prior to dedicating to a 20 year agreement. Maybe you’ll now comprehend why you get so many cancellations and why if you do not seal the deal on the first consultation you’ve got nearly no possibility of closing it later on. Why not change your approach do exactly what’s right for the client and get on board with a company that provides industry leading value (price + quality + service).
The Solar Lease in Encinitas CA 92024 or PPA Sales Pitch usually includes six bottom lines. We talked about each below.
1. Go Solar and Pay Nothing! Or no cash out of pocket.
Signing a 20 year contract where you guarantee to pay X hundred dollars per month is barely paying absolutely nothing. If you add up all those regular monthly payments during the term of the agreement you’ll be paying 2 to 3 times what you would have paid acquiring the solar system even if you factor in the interest paid on the solar loan. Many zero cash down solar loans are available. If you have the credit history to qualify for the lease you can make use of the bank’s money to fund your solar system with absolutely no money down.
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2. No fears. The leasing/PPA company in Encinitas CA 92024 is accountable for all repair and maintenance on the system.
The renting business will not clean your photovoltaic panels which is about just maintenance used on a solar system. Solar systems are exceptionally low upkeep with no moving parts and feature incredibly long maker’s warranties and efficiency guarantees. 25 years with a microinverter based system, that’s longer than the leasing business’ assurance. A lot of tier 1 solar equipment producers are bigger and more solvent than the solar leasing business by many multiples. Those long guarantees are backed up by a 20 year bumper to bumper guarantee from Solar Symphony.
3. Insurance coverage– 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 just a couple dollars per month.
4. Tracking– the renting company monitors your system for the life of the lease/PPA.
When you buy a system you also get monitoring for the life of the system, using the exact same tracking devices made use of by the leasing company.
5. Just sign a contract and the leasing company does everything else.
When buying a system you likewise simply sign an agreement and the solar service providers does everything else. Difference 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 influence your financial obligation to income ratio.
This may be the only real advantage of the lease but it comes at an awefully high rate. If this is one of your major issues there are funding choices for a purchase (PACE and HERO) that also do not strike your individual credit or impact your debt to earnings ratio. And those programs permit nearly any house owner to go solar regardless of their credit rating.
Now for the 6 major drawbacks to a solar lease in Encinitas CA 92024 or PPA.
1. A lease is a 20 year liability. It is not a possession or an investment in solar. The solar leasing business are investing in solar on your roofing system! You’re just supplying them a guaranteed 20 year capital!
2. Now you have two utility bills not simply one! In essence the renting company ends up being a second energy. So, sign a solar lease and now you have 2 utility companies you have to pay each month.
3. Many leases or PPAs bring an annual expense escalator, typically 2.9 %. So while you might be conserving cash today in a several years you will not be.
4. You won’t have the ability to declare the 30 % federal tax credit and any suitable cash rebates. You likewise won’t be able to claim any tax deductible interest on solar loan payments (HELOC or PACE).
5. You never get to complimentary power with a lease or PPA. On the other hand, if you buy a solar system once the solar loan is paid off you can take pleasure in complimentary electricity 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 troublesome. Solar leases require the brand-new owner to presume the lease and terms. If you check out any of the above you can probably see why an educated customer would not be interested in presuming the obligations of your lease. This is specifically true if the lease is 7 or more years old and the annual expense escalator in the lease has actually now raised the expense of electricity to equal or more than the expense of electrical energy from the energy.