Before you sign your name to a solar panel lease on your home in Garden Grove CA 92842 you need to understand exactly what you are truly getting into. If you’re in business of offering solar leases perhaps you need to try Googling this, “benefits of solar lease” Read all of the page one results and see what your consumer’s are reading if they do even a percentage of homework. You likewise may attempt Googling, “selling home with solar lease” and “solar lease vs. buy”. Read exactly what your customer’s will certainly check out when they do 30 minutes of study online prior to dedicating to a 20 year agreement. 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 almost no opportunity of closing it later. Why not alter your method do exactly what’s right for the client and get on board with a business that supplies market leading value (cost + quality + service).
The Solar Lease in Garden Grove CA 92842 or PPA Sales Pitch usually 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 those regular monthly payments throughout the regard to the contract you’ll be paying 2 to 3 times exactly what you would have paid buying the solar system even if you factor in the interest paid on the solar loan. Lots of zero money down solar loans are offered. If you have the credit report to qualify for the lease you can use the bank’s cash to fund your solar system with absolutely no cash down.
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2. No fears. The leasing/PPA company in Garden Grove CA 92842 is liable for all repair and maintenance on the system.
The leasing business will certainly not clean your solar panels which is about just upkeep needed on a solar system. Solar systems are incredibly low maintenance with no moving parts and have exceptionally long maker’s service warranties and performance warranties. 25 years with a microinverter based system, that’s longer than the leasing business’ warranty. Many tier 1 solar equipment makers are bigger and more solvent than the solar leasing company by numerous multiples. Those long service 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 renting business insures the system.
Purchase a system and the solar system is covered under your house owner’s policy for a simply a couple dollars per month.
4. Tracking– the renting company monitors your system for the life of the lease/PPA.
When you buy a system you also get keeping an eye on for the life of the system, utilizing the same monitoring devices made use of by the leasing company.
5. Just sign an agreement and the leasing company does everything else.
When buying a system you also just sign an agreement and the solar professionals does everything else. Difference is the leasing business agreement is 17 pages (fine print) and the solar contractor’s contract is 2 pages.
6. A lease doesn’t hit your individual credit. Does not influence your financial obligation to earnings ratio.
This may be the only real advantage of the lease however it comes at an awefully high price. If this is one of your primary issues there are funding alternatives for a purchase (PACE and HERO) that also don’t strike your individual credit or impact your debt to income ratio. And those programs allow almost any house owner to go solar regardless of their credit rating.
Now for the six main downsides to a solar lease in Garden Grove CA 92842 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 buying solar on your roofing system! You’re simply offering them a guaranteed 20 year cash flow!
2. Now you have two utility costs not simply one! In essence the leasing business becomes a second utility. So, sign a solar lease and now you have 2 utility companies you need to pay each month.
3. Most leases or PPAs bring a yearly expense escalator, usually 2.9 %. So while you may be conserving money today in a several years you won’t be.
4. You will not be able to declare the 30 % federal tax credit and any appropriate cash refunds. You also won’t be able to claim any tax deductible interest on solar loan payments (HELOC or PACE).
5. You never 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 enjoy totally free 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 problematic. Solar leases use the new owner to assume the lease and terms. If you read any of the above you can probably see why an informed consumer would not have an interest in presuming the responsibilities of your lease. This is particularly real if the lease is 7 or more years old and the annual cost escalator in the lease has actually now raised the expense of electrical power to equivalent or more than the cost of electrical energy from the utility.