Prior to you sign your name to a solar panel lease on your home in Irvine CA 92717 you have to comprehend exactly what you are truly getting into. If you’re in business of offering solar leases possibly you must attempt Googling this, “benefits of solar lease” Read all the page one results and see what your consumer’s are checking out if they do even a percentage of homework. You likewise may try Googling, “selling home with solar lease” and “solar lease vs. purchase”. Read exactly what your client’s will read when they do 30 minutes of research online before committing to a 20 year contract. Possibly you’ll now understand why you get so many cancellations and why if you do not seal the deal on the first consultation you’ve got practically no opportunity of closing it later on. Why not change your strategy 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 Irvine CA 92717 or PPA Sales Pitch usually consists of 6 bottom lines. We went over each below.
1. Go Solar and Pay Nothing! Or no money out of pocket.
Signing a 20 year contract in which you guarantee to pay X hundred dollars per month is barely paying nothing. If you accumulate all of those regular monthly payments throughout the term of the agreement you’ll be paying 2 to 3 times exactly what you would have paid acquiring the solar system even if you consider the interest paid on the solar loan. Numerous zero money down solar loans are available. If you have the credit score to get approved for the lease you can make use of the bank’s money to fund your solar system with no cash down.
[ssvideo keyword=”Solar Companies” title=”Solar Companies in Irvine”]
2. No worries. The leasing/PPA business in Irvine CA 92717 is liable for all repair and maintenance on the system.
The leasing company will not clean your solar panels which has to do with just upkeep used on a solar system. Solar systems are exceptionally low maintenance with no moving parts and have very long manufacturer’s service warranties and performance guarantees. 25 years with a microinverter based system, that’s longer than the leasing companies’ assurance. Most tier 1 solar equipment producers are larger and more solvent than the solar leasing company by many multiples. Those long warranties are backed up by a 20 year bumper to bumper guarantee from Solar Symphony.
3. Insurance– go solar with a lease and the leasing business guarantees 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 company monitors your system for the life of the lease/PPA.
When you acquire a system you also get monitoring for the life of the system, utilizing the very same tracking devices utilized by the leasing company.
5. Just sign an agreement and the renting company does everything else.
When purchasing a system you also just sign an agreement and the solar professionals does everything else. Difference is the leasing companies agreement is 17 pages (small print) and the solar contractor’s contract is 2 pages.
6. A lease doesn’t strike your individual credit. Doesn’t affect your financial obligation to earnings ratio.
This might be the only real advantage of the lease however it comes at an awefully high cost. If this is among your primary issues there are funding alternatives for a purchase (PACE and HERO) that likewise don’t strike your personal credit or impact your debt to earnings ratio. And those programs permit nearly any homeowner to go solar regardless of their credit score.
Now for the 6 primary disadvantages to a solar lease in Irvine CA 92717 or PPA.
1. A lease is a 20 year liability. It is not an asset or a financial investment in solar. The solar leasing companies are buying solar on your roofing system! You’re simply providing them a guaranteed 20 year cash flow!
2. Now you have 2 utility bills not just one! In essence the leasing company ends up being a second utility. So, sign a solar lease and now you have 2 energy business you have to pay each month.
3. Many leases or PPAs carry an annual cost escalator, normally 2.9 %. So while you may be conserving cash today in a numerous years you won’t be.
4. You will not have the ability to claim the 30 % federal tax credit and any appropriate money refunds. You also will not have the ability 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. In contrast, if you acquire a solar system once the solar loan is settled you can get totally free electricity from the sun for 10– 15 years depending upon the length of the solar loan.
[google-map location=”Irvine CA”]
6. Selling your house with a solar lease or PPA can be problematic. Solar leases require the brand-new owner to presume the lease and terms. If you check out any of the above you can most likely see why an educated customer would not want presuming the commitments of your lease. This is specifically true if the lease is 7 or more years of ages and the yearly cost escalator in the lease has now raised the expense of electricity to equivalent or more than the expense of electricity from the utility.