Before you sign your name to a solar panel lease on your house in Fountain Valley CA 92728 you need to comprehend exactly what you are actually getting into. If you’re in business of selling solar leases maybe you must attempt Googling this, “benefits of solar lease” Read all the page one results and see exactly what your customer’s are checking out if they do even a small amount of homework. You also may try Googling, “selling home with solar lease” and “solar lease vs. purchase”. Read exactly what your client’s will certainly check out when they do 30 minutes of research online prior to committing 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 first consultation you’ve got virtually no opportunity of closing it later on. Why not alter your approach do exactly what’s right for the client and get on board with a company that provides market leading value (rate + quality + service).
The Solar Lease in Fountain Valley CA 92728 or PPA Sales Pitch usually includes six main points. We talked about each below.
1. Go Solar and Pay Nothing! Or no money out of pocket.
Signing a 20 year contract where you promise to pay X hundred dollars per month is barely paying absolutely nothing. If you accumulate all those regular monthly payments throughout the regard to 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 zero cash down solar loans are readily available. If you have the credit history to qualify for the lease you can make use of the bank’s cash to finance your solar system with no money down.
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2. No fears. The leasing/PPA company in Fountain Valley CA 92728 is responsible for all maintenance and repairs on the system.
The renting company will not clean your photovoltaic panels which has to do with just upkeep used on a solar system. Solar systems are extremely low upkeep without any moving parts and feature incredibly long manufacturer’s guarantees and efficiency assurances. 25 years with a microinverter based system, that’s longer than the leasing companies’ warranty. The majority of tier 1 solar devices makers are larger and more solvent than the solar leasing company by many multiples. Those long warranties are supported by a 20 year bumper to bumper service warranty from Solar Symphony.
3. Insurance coverage– go solar with a lease and the renting 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 acquire a system you also get keeping track of for the life of the system, utilizing the same tracking equipment made use of by the leasing 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 specialists does everything else. Distinction is the leasing business contract is 17 pages (fine print) and the solar specialist’s contract is 2 pages.
6. A lease does not strike your individual credit. Doesn’t impact your debt to income ratio.
This might be the only true benefit of the lease but it comes at an awefully high price. If this is one of your primary concerns there are financing options for a purchase (PACE and HERO) that also do not hit your individual credit or influence your debt to earnings ratio. And those programs permit almost any house owner to go solar no matter their credit score.
Now for the 6 primary downsides to a solar lease in Fountain Valley CA 92728 or PPA.
1. A lease is a 20 year liability. It is not an asset or an investment in solar. The solar leasing business are buying solar on your roofing system! You’re simply providing them a guaranteed 20 year capital!
2. Now you have two utility bills not simply one! In essence the renting business ends up being a second energy. So, sign a solar lease and now you have two energy business you have to pay monthly.
3. Many leases or PPAs carry an annual cost escalator, normally 2.9 %. So while you may be conserving money today in a numerous years you won’t be.
4. You won’t be able to declare the 30 % federal tax credit and any relevant cash refunds. You likewise won’t be able to assert any tax deductible interest on solar loan payments (HELOC or PACE).
5. You never ever get to 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 delight in free electrical power from the sun for 10– 15 years depending on the length of the solar loan.
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6. Selling your house with a solar lease or PPA can be problematic. Solar leases need the new owner to assume the lease and terms. If you read any of the above you can probably see why an enlightened consumer would not be interested in assuming the responsibilities of your lease. This is especially real if the lease is 7 or more years old and the yearly expense escalator in the lease has now raised the expense of electrical power to equivalent or more than the expense of electrical energy from the energy.