Prior to you sign your name to a solar panel lease on your house in Garden Grove CA 92840 you need to comprehend what you are truly getting into. If you’re in the business of offering solar leases perhaps you ought to try Googling this, “benefits of solar lease” Read all the page one results and see what your customer’s are checking out if they do even a small amount of research. You also may attempt Googling, “selling home with solar lease” and “solar lease vs. buy”. Read what your consumer’s will read when they do 30 minutes of study online before dedicating to a 20 year contract. Possibly you’ll now comprehend why you get numerous cancellations and why if you do not seal the deal on the very first visit you’ve got practically no opportunity of closing it later on. Why not alter your technique do exactly 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 Garden Grove CA 92840 or PPA Sales Pitch typically 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 agreement where you promise to pay X hundred dollars per month is hardly paying nothing. If you build up all of those month-to-month payments during 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. Lots of no cash down solar loans are available. If you have the credit history to qualify for the lease you can use the bank’s money to finance your solar system with absolutely no money down.
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2. No concerns. The leasing/PPA company in Garden Grove CA 92840 is accountable for all repair and maintenance on the system.
The leasing company will certainly not clean your solar panels which has to do with only upkeep used on a solar system. Solar systems are extremely low upkeep without any moving parts and feature incredibly long manufacturer’s warranties and efficiency warranties. 25 years with a microinverter based system, that’s longer than the leasing companies’ assurance. The majority of tier 1 solar equipment producers are larger and more solvent than the solar leasing company by lots of multiples. Those long service warranties 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 guarantees 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 leasing company monitors your system for the life of the lease/PPA.
When you purchase a system you also get monitoring for the life of the system, making use of the exact same monitoring equipment made use of by the leasing business.
5. Simply sign a contract and the renting company does everything else.
When purchasing a system you also just sign an agreement and the solar contractors does everything else. Difference is the leasing business contract is 17 pages (fine print) and the solar service provider’s contract is 2 pages.
6. A lease does not hit your individual credit. Doesn’t affect your debt to income ratio.
This might be the only real advantage of the lease but it comes at an awefully high cost. If this is one of your primary issues there are funding alternatives for a purchase (PACE and HERO) that also do not strike your personal credit or affect your debt to earnings ratio. And those programs permit virtually any house owner to go solar regardless of their credit rating.
Now for the six major downsides to a solar lease in Garden Grove CA 92840 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 purchasing solar on your roofing system! You’re simply offering them a guaranteed 20 year cash flow!
2. Now you have two energy bills not simply one! In essence the leasing company becomes a second utility. So, sign a solar lease and now you have two energy companies you need to pay each month.
3. A lot of leases or PPAs lug a yearly cost escalator, typically 2.9 %. So while you might be saving money today in a several years you won’t be.
4. You won’t be able to claim the 30 % federal tax credit and any applicable cash rebates. You also will not have the ability 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. In contrast, if you purchase a solar system once the solar loan is settled you can take pleasure in complimentary 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 troublesome. Solar leases require the brand-new owner to presume the lease and terms. If you check out any of the above you can probably see why an enlightened consumer would not want presuming the obligations of your lease. This is specifically true if the lease is 7 or more years old and the annual cost escalator in the lease has now raised the expense of electricity to equal or more than the expense of electricity from the energy.