Before you sign your name to a solar panel lease on your house in Huntington Beach CA 92605 you have to comprehend exactly what you are truly getting into. If you’re in business of selling solar leases possibly you must attempt Googling this, “benefits of solar lease” Read all of 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 client’s will read when they do 30 minutes of research online prior to dedicating to a 20 year contract. Maybe you’ll now understand why you get numerous cancellations and why if you do not seal the deal on the first appointment you’ve got practically no possibility of closing it later on. Why not change your approach do exactly what’s right for the client and get on board with a business that provides industry leading value (cost + quality + service).
The Solar Lease in Huntington Beach CA 92605 or PPA Sales Pitch generally 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 where you guarantee 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 contract you’ll be paying 2 to 3 times what you would have paid buying 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 approved for the lease you can utilize 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 Huntington Beach CA 92605 is responsible for all maintenance and repairs on the system.
The leasing company will not clean your solar panels which has to do with just upkeep needed on a solar system. Solar systems are very low upkeep without any moving parts and come with incredibly long producer’s warranties and performance assurances. 25 years with a microinverter based system, that’s longer than the leasing companies’ guarantee. A lot of tier 1 solar equipment manufacturers are bigger and more solvent than the solar leasing business by numerous multiples. Those long service warranties are backed up by a 20 year bumper to bumper warranty from Solar Symphony.
3. Insurance– go solar with a lease and the leasing company guarantees 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 business 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, utilizing the very same tracking devices used by the renting company.
5. Just sign a contract and the renting company does everything else.
When acquiring a system you likewise simply sign an agreement and the solar specialists does everything else. Distinction is the leasing companies agreement is 17 pages (fine print) and the solar contractor’s agreement is 2 pages.
6. A lease doesn’t strike your personal credit. Does not affect your financial obligation to earnings ratio.
This may be the only real advantage of the lease but it comes at an awefully high cost. If this is among your main concerns there are financing alternatives for a purchase (PACE and HERO) that also do not strike your personal credit or influence your debt to earnings ratio. And those programs enable virtually any house owner to go solar regardless of their credit rating.
Now for the 6 major disadvantages to a solar lease in Huntington Beach CA 92605 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 investing in solar on your roofing system! You’re just providing them an ensured 20 year capital!
2. Now you have 2 energy costs not simply one! In essence the renting business becomes a 2nd utility. So, sign a solar lease and now you have 2 utility business you need to pay monthly.
3. The majority of leases or PPAs bring a yearly cost escalator, usually 2.9 %. So while you may be conserving cash today in a several years you won’t be.
4. You will not be able to claim the 30 % federal tax credit and any applicable cash discounts. You likewise won’t be able to assert any tax deductible interest on solar loan payments (HELOC or PACE).
5. You never ever get to totally free power with a lease or PPA. In contrast, if you buy a solar system once the solar loan is settled you can enjoy free electricity from the sun for 10– 15 years depending upon the length of the solar loan.
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6. Offering your home with a solar lease or PPA can be troublesome. 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 educated customer would not want presuming the responsibilities 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 actually now raised the cost of electrical power to equal or more than the cost of electrical power from the energy.