Before you sign your name to a solar panel lease on your house in Irvine CA 92716 you need to comprehend exactly what you are truly getting into. If you’re in business of selling solar leases possibly you need to try Googling this, “benefits of solar lease” Read all of the page one results and see exactly what your customer’s are checking out if they do even a percentage of homework. You likewise might try Googling, “selling home with solar lease” and “solar lease vs. buy”. Read exactly what your client’s will certainly read when they do 30 minutes of study online before dedicating to a 20 year contract. Maybe you’ll now comprehend why you get a lot of cancellations and why if you don’t seal the deal on the first appointment you’ve got almost no opportunity of closing it later on. Why not change your approach do exactly what’s right for the customer and get on board with a company that provides market leading value (cost + quality + service).
The Solar Lease in Irvine CA 92716 or PPA Sales Pitch usually consists of 6 bottom lines. We discussed each below.
1. Go Solar and Pay Nothing! Or no money out of pocket.
Signing a 20 year agreement in which you promise to pay X hundred dollars per month is barely paying absolutely nothing. If you accumulate all those monthly payments throughout the term of the agreement you’ll be paying 2 to 3 times what you would have paid acquiring the solar system even if you factor in the interest paid on the solar loan. Numerous zero cash down solar loans are readily available. If you have the credit report to get the lease you can use the bank’s money to fund your solar system with zero cash down.
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2. No fears. The leasing/PPA business in Irvine CA 92716 is liable for all maintenance and repairs on the system.
The renting business will not clean your solar panels which is about just upkeep needed on a solar system. Solar systems are incredibly low upkeep with no moving parts and have very long producer’s warranties and efficiency assurances. 25 years with a microinverter based system, that’s longer than the leasing companies’ guarantee. Many tier 1 solar equipment producers are bigger and more solvent than the solar leasing business by many multiples. Those long guarantees are backed up by a 20 year bumper to bumper guarantee 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 homeowner’s policy for a simply a couple dollars per month.
4. Monitoring– the leasing company monitors your system for the life of the lease/PPA.
When you purchase a system you also get monitoring for the life of the system, making use of the very same tracking equipment used by the leasing company.
5. Simply sign an agreement and the renting company does everything else.
When acquiring a system you likewise simply sign a contract and the solar contractors does everything else. Difference is the leasing business agreement is 17 pages (small print) and the solar service provider’s agreement is 2 pages.
6. A lease doesn’t strike your individual credit. Does not affect your debt to income ratio.
This may be the only real benefit of the lease however it comes at an awefully high rate. If this is among your main issues there are funding alternatives for a purchase (PACE and HERO) that likewise don’t strike your individual credit or impact your financial obligation to income ratio. And those programs enable practically any house owner to go solar no matter their credit rating.
Now for the 6 major disadvantages to a solar lease in Irvine CA 92716 or PPA.
1. A lease is a 20 year liability. It is not a possession or an investment in solar. The solar leasing business are purchasing solar on your roofing! You’re just offering them an ensured 20 year capital!
2. Now you have 2 utility expenses not just one! In essence the leasing company becomes a second utility. So, sign a solar lease and now you have 2 utility business you have to pay each month.
3. Many leases or PPAs lug an annual expense escalator, normally 2.9 %. So while you may be conserving money today in a several years you won’t be.
4. You won’t be able to assert the 30 % federal tax credit and any appropriate money refunds. You also won’t be able to assert any tax deductible interest on solar loan payments (HELOC or PACE).
5. You never ever get to free power with a lease or PPA. On the other hand, if you acquire a solar system once the solar loan is settled you can enjoy complimentary electricity from the sun for 10– 15 years depending upon the length of the solar loan.
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6. Offering your house with a solar lease or PPA can be problematic. Solar leases need the new owner to presume the lease and terms. If you read any of the above you can most likely see why an informed customer would not be interested in presuming the obligations of your lease. This is especially real if the lease is 7 or more years of ages and the yearly expense escalator in the lease has actually now raised the cost of electricity to equal or more than the expense of electricity from the energy.