Before you sign your name to a solar panel lease on your house in Huntington Beach CA 92615 you need to understand what you are really getting into. If you’re in the business of offering solar leases perhaps you should attempt Googling this, “benefits of solar lease” Read all the page one results and see what your consumer’s are reading if they do even a small amount of research. You also might attempt Googling, “selling home with solar lease” and “solar lease vs. purchase”. Read what your consumer’s will certainly check out when they do 30 minutes of study online prior to committing to a 20 year contract. Perhaps you’ll now understand why you get so many cancellations and why if you don’t seal the deal on the first consultation you’ve got almost no possibility of closing it later. Why not alter your strategy do what’s right for the consumer and get on board with a business that offers industry leading value (price + quality + service).
The Solar Lease in Huntington Beach CA 92615 or PPA Sales Pitch usually consists of 6 bottom lines. We discussed each below.
1. Go Solar and Pay Nothing! Or no cash out of pocket.
Signing a 20 year contract in which you guarantee to pay X hundred dollars per month is hardly paying absolutely nothing. If you build up all those 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 factor in the interest paid on the solar loan. Numerous zero money down solar loans are offered. If you have the credit score to qualify for the lease you can utilize the bank’s cash to fund your solar system with zero cash down.
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2. No worries. The leasing/PPA business in Huntington Beach CA 92615 is accountable for all repair and maintenance on the system.
The renting company will not clean your solar panels which is about only maintenance needed on a solar system. Solar systems are incredibly low upkeep without any moving parts and have very long producer’s warranties and efficiency guarantees. 25 years with a microinverter based system, that’s longer than the leasing companies’ assurance. A lot of tier 1 solar devices makers are bigger and more financially stable than the solar leasing company by lots of 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 business insures the system.
Purchase a system and the solar system is covered under your homeowner’s policy for a just a couple dollars per month.
4. Monitoring– 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, using the exact same tracking equipment made use of by the leasing company.
5. Just sign a contract and the leasing company does everything else.
When buying a system you likewise simply sign an agreement and the solar professionals does everything else. Distinction is the leasing companies contract is 17 pages (fine print) and the solar service provider’s agreement is 2 pages.
6. A lease does not hit your individual credit. Doesn’t impact your financial obligation to income ratio.
This might be the only real advantage of the lease however it comes at an awefully high rate. If this is one of your major concerns there are financing options for a purchase (PACE and HERO) that also do not hit your personal credit or affect your debt to income ratio. And those programs enable practically any homeowner to go solar despite their credit rating.
Now for the six primary disadvantages to a solar lease in Huntington Beach CA 92615 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 investing in solar on your roofing! You’re just supplying them an ensured 20 year capital!
2. Now you have 2 utility expenses not just one! In essence the renting company ends up being a 2nd energy. So, sign a solar lease and now you have two utility companies you need to pay monthly.
3. Most leases or PPAs carry an annual expense escalator, normally 2.9 %. So while you might be conserving cash today in a numerous years you won’t be.
4. You won’t have the ability to claim the 30 % federal tax credit and any applicable money rebates. You also won’t have the ability to declare any tax deductible interest on solar loan payments (HELOC or PACE).
5. You never get to free power with a lease or PPA. In contrast, if you purchase a solar system once the solar loan is paid off you can delight in 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 troublesome. Solar leases use the new owner to presume the lease and terms. If you check out any of the above you can probably see why an enlightened consumer would not be interested in assuming the responsibilities of your lease. This is especially real if the lease is 7 or more years of ages and the yearly cost escalator in the lease has now raised the cost of electricity to equivalent or more than the cost of electricity from the energy.