Prior to you sign your name to a solar panel lease on your home in Escondido CA 92030 you need to understand what you are truly getting into. If you’re in the business of offering solar leases maybe you should try Googling this, “benefits of solar lease” Read all of the page one results and see what your customer’s are reading if they do even a percentage of research. You also may try Googling, “selling home with solar lease” and “solar lease vs. purchase”. Read what your customer’s will read when they do 30 minutes of research online before committing to a 20 year agreement. Possibly you’ll now understand why you get many cancellations and why if you do not seal the deal on the very first appointment you’ve got virtually no opportunity of closing it later on. Why not alter your strategy do exactly what’s right for the customer and get on board with a business that supplies industry leading value (cost + quality + service).
The Solar Lease in Escondido CA 92030 or PPA Sales Pitch usually consists of 6 bottom lines. We went over each below.
1. Go Solar and Pay Nothing! Or no money out of pocket.
Signing a 20 year agreement where 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 agreement you’ll be paying 2 to 3 times what you would have paid purchasing the solar system even if you factor in the interest paid on the solar loan. Lots of absolutely no cash down solar loans are readily available. If you have the credit history to qualify for the lease you can utilize the bank’s cash to finance your solar system with no money down.
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2. No worries. The leasing/PPA business in Escondido CA 92030 is liable for all maintenance and repairs on the system.
The renting business will not clean your photovoltaic panels which has to do with only maintenance needed on a solar system. Solar systems are exceptionally low maintenance without any moving parts and come with incredibly long producer’s service warranties and performance guarantees. 25 years with a microinverter based system, that’s longer than the leasing companies’ assurance. Most tier 1 solar devices makers are bigger and more solvent than the solar leasing company by numerous multiples. Those long service 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 homeowner’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 also get keeping track of for the life of the system, using the same tracking devices used by the renting company.
5. Simply sign a contract and the leasing company does everything else.
When buying a system you also simply sign a contract and the solar service providers does everything else. Difference is the leasing companies contract is 17 pages (fine print) and the solar contractor’s contract is 2 pages.
6. A lease doesn’t hit your individual credit. Does not influence your financial obligation to earnings ratio.
This might be the only true benefit of the lease but it comes at an awefully high rate. If this is one of your primary concerns there are funding alternatives for a purchase (PACE and HERO) that also don’t hit your personal credit or affect your debt to income ratio. And those programs enable virtually any homeowner to go solar despite their credit rating.
Now for the six major downsides to a solar lease in Escondido CA 92030 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 buying solar on your roofing! You’re simply providing them a guaranteed 20 year cash flow!
2. Now you have two utility bills not simply one! In essence the leasing business ends up being a second utility. So, sign a solar lease and now you have 2 utility business you need to pay each month.
3. Many leases or PPAs bring a yearly expense escalator, typically 2.9 %. So while you might be conserving money today in a several years you won’t be.
4. You will not be able to declare the 30 % federal tax credit and any suitable cash refunds. You likewise won’t be able 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 delight in free electrical power from the sun for 10– 15 years depending upon the length of the solar loan.
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6. Selling your house with a solar lease or PPA can be bothersome. Solar leases need 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 want assuming the obligations of your lease. This is especially real if the lease is 7 or more years old and the annual cost escalator in the lease has now raised the expense of electrical energy to equivalent or more than the cost of electricity from the energy.