Before you sign your name to a solar panel lease on your house in Homeland CA 92548 you need to understand exactly what you are really getting into. If you’re in business of offering solar leases perhaps you should try 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 percentage of research. You likewise may try Googling, “selling home with solar lease” and “solar lease vs. purchase”. Read what your customer’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 a lot of cancellations and why if you don’t seal the deal on the very first appointment you’ve got nearly no possibility of closing it later. Why not alter your technique do exactly what’s right for the consumer and get on board with a business that provides market leading value (cost + quality + service).
The Solar Lease in Homeland CA 92548 or PPA Sales Pitch typically includes 6 main points. We talked about each below.
1. Go Solar and Pay Nothing! Or no cash out of pocket.
Signing a 20 year contract in which you promise to pay X hundred dollars per month is hardly paying nothing. If you accumulate all those regular monthly payments throughout the term of the agreement you’ll be paying 2 to 3 times what you would have paid buying the solar system even if you factor in the interest paid on the solar loan. Numerous no money down solar loans are available. If you have the credit history to get the lease you can use the bank’s cash to finance your solar system with no money down.
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2. No concerns. The leasing/PPA business in Homeland CA 92548 is responsible for all repair and maintenance on the system.
The renting company will certainly not clean your solar panels which is about only maintenance required on a solar system. Solar systems are exceptionally low maintenance with no moving parts and have exceptionally long manufacturer’s warranties and performance assurances. 25 years with a microinverter based system, that’s longer than the leasing business’ warranty. The majority of tier 1 solar equipment makers are bigger and more financially stable than the solar leasing business by numerous multiples. Those long service warranties are backed up by a 20 year bumper to bumper guarantee from Solar Symphony.
3. Insurance coverage– go solar with a lease and the leasing 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. Tracking– the renting company monitors your system for the life of the lease/PPA.
When you buy a system you also get monitoring for the life of the system, using the very same tracking equipment used by the renting company.
5. Just sign an agreement and the renting business does everything else.
When purchasing a system you likewise simply sign an agreement and the solar professionals does everything else. Difference is the leasing companies contract is 17 pages (fine print) and the solar contractor’s contract is 2 pages.
6. A lease doesn’t hit your individual credit. Doesn’t influence your financial obligation to earnings ratio.
This may be the only real benefit of the lease but it comes at an awefully high rate. If this is one of your primary issues there are financing alternatives for a purchase (PACE and HERO) that likewise do not strike your individual credit or influence your debt to earnings ratio. And those programs allow virtually any homeowner to go solar despite their credit rating.
Now for the six major disadvantages to a solar lease in Homeland CA 92548 or PPA.
1. A lease is a 20 year liability. It is not an asset or a financial investment in solar. The solar leasing companies are investing in solar on your roof! You’re just providing them an ensured 20 year cash flow!
2. Now you have two energy costs not simply one! In essence the leasing business ends up being a second utility. So, sign a solar lease and now you have 2 utility business you need to pay each month.
3. A lot of leases or PPAs bring an annual expense escalator, usually 2.9 %. So while you might be saving cash today in a numerous years you will not be.
4. You won’t be able to assert the 30 % federal tax credit and any applicable money rebates. You likewise will not have the ability to claim 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 acquire a solar system once the solar loan is paid off you can delight in complimentary 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 troublesome. Solar leases require the brand-new owner to assume the lease and terms. If you check out any of the above you can most likely see why an educated customer would not have an interest in presuming the responsibilities of your lease. This is especially real if the lease is 7 or more years old and the yearly cost escalator in the lease has actually now raised the expense of electrical power to equivalent or more than the cost of electrical power from the energy.