Before you sign your name to a solar panel lease on your home in Escondido CA 92025 you have to comprehend what you are truly getting into. If you’re in the business of offering solar leases perhaps you should try Googling this, “benefits of solar lease” Read all of the page one results and see what your consumer’s are reading if they do even a small amount of research. You also may try Googling, “selling home with solar lease” and “solar lease vs. buy”. Read what your client’s will check out when they do 30 minutes of study online prior to dedicating to a 20 year agreement. 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 opportunity of closing it later on. Why not change your approach do exactly what’s right for the consumer and get on board with a company that provides industry leading value (cost + quality + service).
The Solar Lease in Escondido CA 92025 or PPA Sales Pitch usually includes six bottom lines. 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 hardly 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 purchasing the solar system even if you consider the interest paid on the solar loan. Lots of absolutely no cash down solar loans are available. If you have the credit score to get the lease you can use the bank’s cash to finance your solar system with no cash down.
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2. No worries. The leasing/PPA business in Escondido CA 92025 is responsible for all maintenance and repairs on the system.
The leasing business will not clean your photovoltaic panels which is about just maintenance used on a solar system. Solar systems are very low upkeep without any moving parts and include incredibly long manufacturer’s guarantees and efficiency warranties. 25 years with a microinverter based system, that’s longer than the leasing business’ assurance. The majority of tier 1 solar equipment producers are larger and more financially stable than the solar leasing company by many multiples. Those long warranties are backed up by a 20 year bumper to bumper warranty from Solar Symphony.
3. Insurance– go solar with a lease and the leasing company insures the system.
Purchase a system and the solar system is covered under your property owner’s policy for a just 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 likewise get keeping track of for the life of the system, using the very same monitoring devices utilized by the renting business.
5. Simply sign a contract and the renting company does everything else.
When purchasing a system you likewise just sign an agreement and the solar professionals does everything else. Difference is the leasing companies agreement is 17 pages (fine print) and the solar professional’s agreement is 2 pages.
6. A lease doesn’t hit your individual credit. Does not affect your financial obligation to income ratio.
This might be the only true benefit of the lease but it comes at an awefully high price. If this is among your major concerns there are funding choices for a purchase (PACE and HERO) that also don’t strike your individual credit or impact your financial obligation to income ratio. And those programs permit almost any homeowner to go solar regardless of their credit rating.
Now for the 6 main drawbacks to a solar lease in Escondido CA 92025 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 roofing! You’re simply offering them a guaranteed 20 year capital!
2. Now you have two utility costs not simply one! In essence the leasing business becomes a second utility. So, sign a solar lease and now you have 2 utility business you need to pay each month.
3. The majority of leases or PPAs carry an annual cost escalator, generally 2.9 %. So while you may 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 relevant money rebates. You likewise will not 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. In contrast, if you acquire a solar system once the solar loan is paid off you can take pleasure in totally free electrical energy from the sun for 10– 15 years depending on the length of the solar loan.
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6. Selling your home with a solar lease or PPA can be bothersome. Solar leases use the new owner to presume the lease and terms. If you read any of the above you can most likely see why an enlightened consumer would not have an interest in presuming the commitments of your lease. This is particularly real if the lease is 7 or more years of ages and the annual cost escalator in the lease has actually now raised the cost of electricity to equal or more than the cost of electrical energy from the energy.