Prior to you sign your name to a solar panel lease on your house in Huntington Beach CA 92647 you need to understand exactly what you are actually getting into. If you’re in business of selling solar leases perhaps you ought to 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 percentage of research. You also might attempt Googling, “selling home with solar lease” and “solar lease vs. buy”. Read what your customer’s will certainly read when they do 30 minutes of study online before dedicating to a 20 year contract. Maybe you’ll now understand why you get so many cancellations and why if you do not close the deal on the very first appointment you’ve got almost no possibility of closing it later on. Why not change your approach do what’s right for the customer and get on board with a business that provides market leading value (rate + quality + service).
The Solar Lease in Huntington Beach CA 92647 or PPA Sales Pitch typically consists of six main points. We discussed each below.
1. Go Solar and Pay Nothing! Or no cash out of pocket.
Signing a 20 year contract in which you assure to pay X hundred dollars per month is hardly paying absolutely nothing. If you build up all of those regular monthly payments throughout the term of the contract you’ll be paying 2 to 3 times exactly what you would have paid buying the solar system even if you factor in the interest paid on the solar loan. Numerous absolutely no cash down solar loans are available. If you have the credit history to get the lease you can use the bank’s cash to fund your solar system with no money down.
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2. No fears. The leasing/PPA business in Huntington Beach CA 92647 is accountable for all maintenance and repairs on the system.
The leasing business will certainly not clean your solar panels which is about just upkeep used on a solar system. Solar systems are exceptionally low upkeep without any moving parts and come with extremely long manufacturer’s warranties and performance warranties. 25 years with a microinverter based system, that’s longer than the leasing companies’ guarantee. A lot of tier 1 solar devices manufacturers are bigger and more financially stable than the solar leasing company 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 renting business 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. Tracking– the renting company monitors your system for the life of the lease/PPA.
When you buy a system you also get keeping track of for the life of the system, utilizing the same tracking equipment utilized by the leasing company.
5. Just sign an agreement and the leasing business does everything else.
When acquiring a system you likewise simply sign an agreement and the solar specialists does everything else. Difference is the leasing companies contract is 17 pages (small print) and the solar specialist’s agreement is 2 pages.
6. A lease doesn’t strike your individual credit. Does not affect your debt to earnings ratio.
This might be the only real benefit of the lease but it comes at an awefully high cost. If this is one of your main concerns there are funding choices for a purchase (PACE and HERO) that likewise don’t hit your personal credit or affect your debt to earnings ratio. And those programs allow nearly any house owner to go solar regardless of their credit rating.
Now for the six main downsides to a solar lease in Huntington Beach CA 92647 or PPA.
1. A lease is a 20 year liability. It is not a possession or an investment in solar. The solar leasing companies are investing in solar on your roofing system! You’re just providing them a guaranteed 20 year cash flow!
2. Now you have 2 energy expenses not simply one! In essence the leasing company becomes a 2nd energy. So, sign a solar lease and now you have two energy companies you have to pay monthly.
3. The majority of leases or PPAs bring an annual cost escalator, normally 2.9 %. So while you may be conserving cash today in a several years you will not be.
4. You won’t be able to assert the 30 % federal tax credit and any suitable money discounts. You likewise will not have the ability to declare any tax deductible interest on solar loan payments (HELOC or PACE).
5. You never ever get to complimentary power with a lease or PPA. On the other hand, if you purchase a solar system once the solar loan is paid off you can take pleasure in free electricity 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 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 consumer would not be interested in presuming the obligations of your lease. This is particularly real if the lease is 7 or more years of ages and the annual expense escalator in the lease has now raised the cost of electrical power to equal or more than the cost of electrical energy from the utility.