Prior to you sign your name to a solar panel lease on your house in Garden Grove CA 92841 you have to understand exactly what you are actually getting into. If you’re in business of selling solar leases possibly you need to attempt Googling this, “benefits of solar lease” Read all the page one results and see exactly what your customer’s are reading if they do even a small amount of research. You likewise might attempt Googling, “selling home with solar lease” and “solar lease vs. purchase”. Read exactly what your client’s will read when they do 30 minutes of study online before dedicating to a 20 year contract. Possibly you’ll now understand why you get many cancellations and why if you do not close the deal on the first visit you’ve got virtually no opportunity of closing it later on. Why not change your approach do exactly what’s right for the customer and get on board with a company that provides market leading value (rate + quality + service).
The Solar Lease in Garden Grove CA 92841 or PPA Sales Pitch normally includes 6 bottom lines. We discussed each below.
1. Go Solar and Pay Nothing! Or no money out of pocket.
Signing a 20 year agreement in which you guarantee to pay X hundred dollars per month is barely paying nothing. If you add up all those monthly payments throughout the term of the agreement you’ll be paying 2 to 3 times exactly 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 score to qualify for the lease you can utilize the bank’s cash to finance your solar system with absolutely no cash down.
[ssvideo keyword=”Solar Contractors” title=”Solar Companies in Garden Grove”]
2. No fears. The leasing/PPA company in Garden Grove CA 92841 is responsible for all maintenance and repairs on the system.
The renting company will certainly not clean your photovoltaic panels which is about only maintenance used on a solar system. Solar systems are incredibly low maintenance without any moving parts and come with exceptionally long producer’s service warranties and performance warranties. 25 years with a microinverter based system, that’s longer than the leasing companies’ guarantee. Many tier 1 solar devices producers are bigger and more solvent than the solar leasing company by lots of multiples. Those long warranties are backed up 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 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 acquire a system you likewise get keeping an eye on for the life of the system, utilizing the same monitoring equipment used by the leasing company.
5. Just sign a contract and the leasing business does everything else.
When buying a system you likewise simply sign an agreement and the solar professionals does everything else. Distinction is the leasing business contract is 17 pages (small print) and the solar service provider’s contract is 2 pages.
6. A lease doesn’t hit your personal credit. Does not impact your debt to earnings ratio.
This may be the only real benefit of the lease however it comes at an awefully high rate. If this is one of your primary concerns there are financing alternatives for a purchase (PACE and HERO) that likewise do not strike your individual credit or influence your financial obligation to income ratio. And those programs allow virtually any house owner to go solar no matter their credit rating.
Now for the 6 major drawbacks to a solar lease in Garden Grove CA 92841 or PPA.
1. A lease is a 20 year liability. It is not an asset or an investment in solar. The solar leasing companies are purchasing solar on your roofing system! You’re simply providing them an ensured 20 year cash flow!
2. Now you have two utility bills not just one! In essence the leasing business ends up being a 2nd utility. So, sign a solar lease and now you have two energy companies you have to pay monthly.
3. A lot of leases or PPAs bring an annual cost escalator, usually 2.9 %. So while you might be conserving cash today in a numerous years you will not be.
4. You won’t be able to declare the 30 % federal tax credit and any relevant cash discounts. You also will not be able to declare any tax deductible interest on solar loan payments (HELOC or PACE).
5. You never get to complimentary 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 take pleasure in free electrical power from the sun for 10– 15 years depending on the length of the solar loan.
[google-map location=”Garden Grove CA”]
6. Selling your house with a solar lease or PPA can be problematic. Solar leases use 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 have an interest in presuming the obligations of your lease. This is particularly true if the lease is 7 or more years old and the yearly expense escalator in the lease has now raised the expense of electrical energy to equivalent or more than the cost of electricity from the utility.