Prior to you sign your name to a solar panel lease on your home in Imperial Beach CA 91933 you have to understand exactly what you are really getting into. If you’re in the business of offering solar leases maybe you should try Googling this, “benefits of solar lease” Read all the page one results and see what your client’s are checking out if they do even a percentage of homework. You also might attempt Googling, “selling home with solar lease” and “solar lease vs. purchase”. Read exactly what your consumer’s will read when they do 30 minutes of study online prior to dedicating to a 20 year agreement. Perhaps you’ll now comprehend why you get a lot of cancellations and why if you don’t seal the deal on the very first visit you’ve got virtually no possibility of closing it later on. Why not change your strategy do what’s right for the client and get on board with a business that provides market leading value (cost + quality + service).
The Solar Lease in Imperial Beach CA 91933 or PPA Sales Pitch usually includes six bottom lines. We talked about each below.
1. Go Solar and Pay Nothing! Or no money out of pocket.
Signing a 20 year agreement where you promise to pay X hundred dollars per month is hardly paying nothing. If you accumulate all of those month-to-month payments during the regard to the agreement 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. Lots of zero money down solar loans are offered. If you have the credit score to qualify for the lease you can use the bank’s cash to finance your solar system with zero money down.
[ssvideo keyword=”Solar Companies” title=”Solar Contractors in Imperial Beach”]
2. No fears. The leasing/PPA business in Imperial Beach CA 91933 is responsible for all repair and maintenance on the system.
The renting company will not clean your solar panels which has to do with just upkeep used on a solar system. Solar systems are very low upkeep without any moving parts and come with extremely long producer’s service warranties and performance guarantees. 25 years with a microinverter based system, that’s longer than the leasing business’ guarantee. Most tier 1 solar equipment manufacturers are larger and more financially stable than the solar leasing business by lots of multiples. Those long service warranties are backed up by a 20 year bumper to bumper service warranty from Solar Symphony.
3. Insurance– go solar with a lease and the leasing company 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 also get keeping track of for the life of the system, making use of the very same monitoring devices utilized by the renting business.
5. Simply sign an agreement and the renting business does everything else.
When buying a system you likewise just sign a contract and the solar professionals does everything else. Distinction is the leasing business agreement is 17 pages (small print) and the solar specialist’s agreement is 2 pages.
6. A lease doesn’t hit your personal credit. Does not impact your debt to earnings ratio.
This might be the only true benefit of the lease however it comes at an awefully high price. If this is one of your major issues there are financing options for a purchase (PACE and HERO) that also do not hit your personal credit or impact your financial obligation to earnings ratio. And those programs enable nearly any house owner to go solar regardless of their credit rating.
Now for the six major downsides to a solar lease in Imperial Beach CA 91933 or PPA.
1. A lease is a 20 year liability. It is not an asset or a financial investment in solar. The solar leasing business are buying solar on your roofing! You’re simply providing them an ensured 20 year cash flow!
2. Now you have 2 energy bills 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 companies you need to pay monthly.
3. Most leases or PPAs bring a yearly cost escalator, usually 2.9 %. So while you might be saving money today in a several years you won’t be.
4. You will not have the ability to claim the 30 % federal tax credit and any appropriate cash discounts. You likewise will not be able to claim 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 buy a solar system once the solar loan is paid off you can enjoy free electricity from the sun for 10– 15 years depending upon the length of the solar loan.
[google-map location=”Imperial Beach CA”]
6. Selling your home with a solar lease or PPA can be problematic. Solar leases require the new owner to assume the lease and terms. If you read 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 annual cost escalator in the lease has actually now raised the cost of electrical power to equivalent or more than the cost of electrical energy from the energy.