Before you sign your name to a solar panel lease on your home in Garden Grove CA 92844 you need to understand exactly what you are actually getting into. If you’re in business of selling solar leases perhaps you must attempt Googling this, “benefits of solar lease” Read all the page one results and see what your client’s are checking out if they do even a small amount of homework. You likewise might try Googling, “selling home with solar lease” and “solar lease vs. buy”. Read exactly what your client’s will certainly read when they do 30 minutes of study online before committing to a 20 year agreement. Possibly you’ll now comprehend why you get many cancellations and why if you don’t seal the deal on the first appointment you’ve got practically no opportunity of closing it later on. Why not change your strategy do exactly what’s right for the client and get on board with a company that offers industry leading value (price + quality + service).
The Solar Lease in Garden Grove CA 92844 or PPA Sales Pitch typically includes six main points. We discussed each below.
1. Go Solar and Pay Nothing! Or no cash out of pocket.
Signing a 20 year agreement in which you guarantee to pay X hundred dollars per month is hardly paying absolutely nothing. If you accumulate all of those regular monthly payments during the regard to the contract you’ll be paying 2 to 3 times exactly what you would have paid acquiring the solar system even if you consider the interest paid on the solar loan. Many absolutely no cash down solar loans are available. If you have the credit history to get the lease you can utilize the bank’s money to finance your solar system with absolutely no cash down.
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2. No fears. The leasing/PPA company in Garden Grove CA 92844 is liable for all maintenance and repairs on the system.
The renting business will certainly not clean your photovoltaic panels which has to do with just upkeep needed on a solar system. Solar systems are incredibly low maintenance with no moving parts and feature extremely long manufacturer’s guarantees and performance guarantees. 25 years with a microinverter based system, that’s longer than the leasing companies’ warranty. Most tier 1 solar devices manufacturers are bigger and more solvent than the solar leasing company by numerous multiples. Those long guarantees are backed up by a 20 year bumper to bumper guarantee 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 property owner’s policy for a just a couple dollars per month.
4. Monitoring– the renting company 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, making use of the very same tracking equipment used by the leasing business.
5. Just sign an agreement and the renting business does everything else.
When buying a system you also simply sign a contract and the solar professionals 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 strike your personal credit. Doesn’t influence your debt to earnings ratio.
This may be the only true benefit of the lease however it comes at an awefully high rate. If this is one of your main issues there are funding options for a purchase (PACE and HERO) that also do not hit your personal credit or affect your debt to earnings ratio. And those programs enable virtually any homeowner to go solar regardless of their credit score.
Now for the six primary disadvantages to a solar lease in Garden Grove CA 92844 or PPA.
1. A lease is a 20 year liability. It is not a possession or a financial investment in solar. The solar leasing companies are buying solar on your roof! You’re simply supplying them an ensured 20 year cash flow!
2. Now you have 2 utility bills not just one! In essence the leasing company ends up being a 2nd utility. So, sign a solar lease and now you have 2 energy companies you have to pay monthly.
3. Most leases or PPAs bring a yearly expense escalator, typically 2.9 %. So while you may be saving money today in a several years you will not be.
4. You will not be able to assert the 30 % federal tax credit and any suitable cash discounts. You also won’t be able to claim any tax deductible interest on solar loan payments (HELOC or PACE).
5. You never get to complimentary power with a lease or PPA. In contrast, if you buy a solar system once the solar loan is settled you can get totally 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 require the brand-new owner to assume the lease and terms. If you read any of the above you can probably see why an informed customer would not want assuming the obligations of your lease. This is especially true if the lease is 7 or more years of ages and the annual expense escalator in the lease has now raised the cost of electricity to equal or more than the expense of electrical energy from the energy.