Prior to you sign your name to a solar panel lease on your home in Fountain Valley CA 92708 you need to understand exactly what you are actually getting into. If you’re in the business of selling solar leases perhaps you need to try Googling this, “benefits of solar lease” Read all the page one results and see what your client’s are checking out if they do even a percentage of research. You also may attempt Googling, “selling home with solar lease” and “solar lease vs. purchase”. Read what your customer’s will certainly check out when they do 30 minutes of research online prior to dedicating to a 20 year contract. Perhaps you’ll now understand why you get a lot of 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 alter your approach do what’s right for the client and get on board with a business that offers market leading value (cost + quality + service).
The Solar Lease in Fountain Valley CA 92708 or PPA Sales Pitch normally consists of 6 main points. We went over each below.
1. Go Solar and Pay Nothing! Or no cash out of pocket.
Signing a 20 year agreement where you guarantee to pay X hundred dollars per month is barely paying absolutely nothing. If you build up all of those regular monthly payments throughout the term of the agreement you’ll be paying 2 to 3 times exactly 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 qualify for the lease you can utilize the bank’s cash to finance your solar system with zero cash down.
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2. No worries. The leasing/PPA business in Fountain Valley CA 92708 is responsible for all maintenance and repairs on the system.
The leasing business will certainly not clean your solar panels which is about just upkeep used on a solar system. Solar systems are incredibly low maintenance with no moving parts and come with very long maker’s warranties and performance guarantees. 25 years with a microinverter based system, that’s longer than the leasing companies’ guarantee. The majority of tier 1 solar equipment makers are bigger and more financially stable than the solar leasing business by numerous multiples. Those long warranties are supported by a 20 year bumper to bumper service 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 simply a couple dollars per month.
4. Tracking– the renting business monitors your system for the life of the lease/PPA.
When you purchase a system you also get keeping an eye on for the life of the system, utilizing the very same tracking devices made use of by the renting company.
5. Just sign an agreement and the renting company does everything else.
When acquiring a system you likewise simply sign a contract and the solar specialists does everything else. Difference is the leasing companies agreement is 17 pages (small print) and the solar service provider’s contract is 2 pages.
6. A lease does not hit your individual credit. Does not impact your debt to earnings ratio.
This may be the only true advantage of the lease but it comes at an awefully high rate. If this is among your major issues there are financing choices for a purchase (PACE and HERO) that also do not hit your personal credit or impact your debt to income ratio. And those programs permit almost any house owner to go solar despite their credit rating.
Now for the 6 major disadvantages to a solar lease in Fountain Valley CA 92708 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! You’re just providing them a guaranteed 20 year capital!
2. Now you have two utility costs not just one! In essence the renting company becomes a 2nd utility. So, sign a solar lease and now you have 2 energy companies you have to pay monthly.
3. The majority of leases or PPAs carry a yearly cost escalator, generally 2.9 %. So while you may be saving money today in a several years you won’t be.
4. You will not be able to claim the 30 % federal tax credit and any applicable cash discounts. You also 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. In contrast, if you buy a solar system once the solar loan is paid off you can get totally free electricity 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 troublesome. Solar leases use the new owner to presume the lease and terms. If you check out any of the above you can probably see why an educated consumer would not be interested in assuming the obligations of your lease. This is specifically true if the lease is 7 or more years of ages and the yearly cost escalator in the lease has actually now raised the expense of electricity to equal or more than the expense of electrical power from the utility.