Before you sign your name to a solar panel lease on your home in Fullerton CA 92831 you need to understand what you are actually getting into. If you’re in the business of selling solar leases perhaps you need to attempt Googling this, “benefits of solar lease” Read all of the page one results and see exactly what your client’s are checking out if they do even a percentage of homework. You also might try Googling, “selling home with solar lease” and “solar lease vs. buy”. Read what your consumer’s will check out when they do 30 minutes of research online before dedicating to a 20 year agreement. Perhaps you’ll now understand why you get a lot of cancellations and why if you don’t close the deal on the very first consultation you’ve got almost no opportunity of closing it later on. Why not alter your strategy do exactly what’s right for the consumer and get on board with a business that provides market leading value (rate + quality + service).
The Solar Lease in Fullerton CA 92831 or PPA Sales Pitch normally includes 6 main points. We went over 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 hardly paying absolutely nothing. If you build up all those monthly payments throughout the term of the contract you’ll be paying 2 to 3 times exactly what you would have paid purchasing the solar system even if you consider the interest paid on the solar loan. Numerous zero money down solar loans are available. If you have the credit score to get approved for the lease you can use the bank’s money to fund your solar system with absolutely no money down.
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2. No fears. The leasing/PPA company in Fullerton CA 92831 is responsible for all maintenance and repairs on the system.
The leasing business will certainly not clean your photovoltaic panels which is about only maintenance required on a solar system. Solar systems are exceptionally low maintenance without any moving parts and feature incredibly long manufacturer’s guarantees and performance assurances. 25 years with a microinverter based system, that’s longer than the leasing companies’ assurance. A lot of tier 1 solar equipment manufacturers are larger and more financially stable than the solar leasing company by lots of 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 renting business 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 business monitors your system for the life of the lease/PPA.
When you purchase a system you likewise get monitoring for the life of the system, using the exact same monitoring devices utilized by the leasing business.
5. Just sign an agreement and the renting company does everything else.
When buying 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 contractor’s agreement is 2 pages.
6. A lease doesn’t hit your personal credit. Does not influence your financial obligation to income ratio.
This may be the only real benefit of the lease but it comes at an awefully high price. If this is among your major issues there are financing alternatives for a purchase (PACE and HERO) that likewise do not strike your individual credit or affect your financial obligation to earnings ratio. And those programs allow virtually any property owner to go solar regardless of their credit score.
Now for the six primary downsides to a solar lease in Fullerton CA 92831 or PPA.
1. A lease is a 20 year liability. It is not a possession or a financial investment in solar. The solar leasing business are purchasing solar on your roofing system! You’re simply offering them a guaranteed 20 year cash flow!
2. Now you have two energy expenses not simply one! In essence the renting company becomes a second energy. So, sign a solar lease and now you have 2 energy business you need to pay monthly.
3. A lot of leases or PPAs carry a yearly cost escalator, typically 2.9 %. So while you might be conserving cash today in a several years you won’t be.
4. You will not be able to claim the 30 % federal tax credit and any relevant money discounts. You also will not 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 paid off you can delight in free electricity from the sun for 10– 15 years depending on the length of the solar loan.
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6. Offering your home with a solar lease or PPA can be bothersome. Solar leases require 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 want assuming the commitments of your lease. This is specifically real if the lease is 7 or more years of ages and the annual cost escalator in the lease has now raised the cost of electricity to equivalent or more than the cost of electrical power from the energy.