Before you sign your name to a solar panel lease on your house in Huntington Beach CA 92646 you need to understand exactly what you are truly getting into. If you’re in the business of selling solar leases perhaps you ought to try Googling this, “benefits of solar lease” Read all the page one results and see exactly what your client’s are reading if they do even a percentage of research. You also may try Googling, “selling home with solar lease” and “solar lease vs. purchase”. Read exactly what your customer’s will check out when they do 30 minutes of study online prior to committing to a 20 year agreement. Possibly you’ll now understand why you get numerous cancellations and why if you do not close the deal on the first consultation you’ve got almost no possibility of closing it later on. Why not alter your technique do exactly what’s right for the client and get on board with a company that supplies market leading value (price + quality + service).
The Solar Lease in Huntington Beach CA 92646 or PPA Sales Pitch normally consists of six main points. We talked about each below.
1. Go Solar and Pay Nothing! Or no money out of pocket.
Signing a 20 year contract in which you assure to pay X hundred dollars per month is hardly paying nothing. If you build up all of those regular monthly payments throughout the regard to the agreement you’ll be paying 2 to 3 times exactly what you would have paid buying the solar system even if you consider the interest paid on the solar loan. Lots of absolutely no money down solar loans are readily available. If you have the credit history to get the lease you can make use of the bank’s cash to fund your solar system with zero cash down.
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2. No worries. The leasing/PPA company in Huntington Beach CA 92646 is accountable for all maintenance and repairs on the system.
The leasing company will not clean your solar panels which has to do with only upkeep needed on a solar system. Solar systems are extremely low maintenance without any moving parts and come with very long maker’s service warranties and performance assurances. 25 years with a microinverter based system, that’s longer than the leasing business’ assurance. The majority of tier 1 solar equipment producers are larger and more financially stable than the solar leasing company by many multiples. Those long guarantees are backed up by a 20 year bumper to bumper service warranty 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 just a couple dollars per month.
4. Tracking– the leasing business monitors your system for the life of the lease/PPA.
When you acquire a system you likewise get keeping an eye on for the life of the system, utilizing the very same tracking devices made use of by the leasing company.
5. Simply sign a contract and the leasing company does everything else.
When buying a system you likewise simply sign an agreement and the solar service providers does everything else. Distinction is the leasing business agreement is 17 pages (small print) and the solar professional’s agreement is 2 pages.
6. A lease doesn’t strike your individual credit. Does not impact your financial obligation to income 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 primary concerns there are funding choices for a purchase (PACE and HERO) that also do not hit your personal credit or affect your debt to income ratio. And those programs allow virtually any property owner to go solar regardless of their credit score.
Now for the six major drawbacks to a solar lease in Huntington Beach CA 92646 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 roof! You’re just providing them a guaranteed 20 year cash flow!
2. Now you have 2 utility bills not simply one! In essence the leasing company ends up being a second utility. So, sign a solar lease and now you have two utility companies you need to pay each month.
3. Many leases or PPAs bring an annual cost escalator, usually 2.9 %. So while you might be conserving money today in a numerous years you will not be.
4. You will not have the ability to claim the 30 % federal tax credit and any appropriate money 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. On the other hand, if you purchase a solar system once the solar loan is settled you can delight in 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 home with a solar lease or PPA can be problematic. Solar leases need 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 informed customer would not be interested in presuming the commitments of your lease. This is specifically true if the lease is 7 or more years old and the yearly cost escalator in the lease has now raised the cost of electricity to equivalent or more than the expense of electrical power from the utility.