Prior to you sign your name to a solar panel lease on your house in Escondido CA 92026 you have to comprehend exactly what you are really getting into. If you’re in business of offering solar leases possibly you ought to try Googling this, “benefits of solar lease” Read all of the page one results and see exactly what your customer’s are checking out if they do even a small amount of research. You also might try Googling, “selling home with solar lease” and “solar lease vs. buy”. Read what your customer’s will check out when they do 30 minutes of research online prior to dedicating to a 20 year agreement. Perhaps you’ll now understand why you get numerous cancellations and why if you don’t close the deal on the very first appointment you’ve got nearly no possibility of closing it later on. Why not alter your approach do what’s right for the consumer and get on board with a company that offers industry leading value (price + quality + service).
The Solar Lease in Escondido CA 92026 or PPA Sales Pitch usually consists of six bottom lines. We talked about 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 add up all of those regular monthly payments during the regard to 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 absolutely no cash down solar loans are offered. If you have the credit history to get the lease you can use the bank’s money to finance your solar system with no money down.
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2. No worries. The leasing/PPA company in Escondido CA 92026 is liable for all maintenance and repairs on the system.
The renting business will not clean your solar panels which is about just maintenance required on a solar system. Solar systems are exceptionally low maintenance with no moving parts and come with very long maker’s service warranties and efficiency assurances. 25 years with a microinverter based system, that’s longer than the leasing companies’ guarantee. Many tier 1 solar equipment producers are bigger and more solvent than the solar leasing business by lots of multiples. Those long guarantees are backed up by a 20 year bumper to bumper warranty from Solar Symphony.
3. Insurance coverage– 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 purchase a system you also 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 also simply sign a contract and the solar professionals does everything else. Distinction is the leasing business agreement is 17 pages (small print) and the solar professional’s agreement is 2 pages.
6. A lease does not strike your personal credit. Doesn’t impact your debt to income ratio.
This might be the only true advantage of the lease but it comes at an awefully high price. If this is among your primary concerns there are financing options for a purchase (PACE and HERO) that also do not strike your personal credit or influence your debt to income ratio. And those programs permit practically any homeowner to go solar no matter their credit rating.
Now for the six major downsides to a solar lease in Escondido CA 92026 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 investing in solar on your roof! You’re just offering them an ensured 20 year capital!
2. Now you have 2 energy bills not just one! In essence the leasing company becomes a second energy. So, sign a solar lease and now you have two utility companies you have to pay monthly.
3. Most leases or PPAs lug a yearly cost escalator, typically 2.9 %. So while you may 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 applicable cash rebates. You likewise won’t be able to declare any tax deductible interest on solar loan payments (HELOC or PACE).
5. You never ever get to totally free power with a lease or PPA. On the other hand, if you purchase a solar system once the solar loan is settled you can enjoy complimentary electricity from the sun for 10– 15 years depending on 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 need the new owner to assume the lease and terms. If you check out any of the above you can most likely see why an enlightened customer would not be interested in presuming the obligations of your lease. This is especially true if the lease is 7 or more years old and the yearly cost escalator in the lease has now raised the cost of electrical power to equivalent or more than the cost of electricity from the utility.