Before you sign your name to a solar panel lease on your home in Irvine CA 92730 you need to understand exactly what you are actually getting into. If you’re in the business of selling solar leases possibly you ought to try Googling this, “benefits of solar lease” Read all the page one results and see exactly what your client’s are checking out if they do even a percentage of homework. You likewise might attempt Googling, “selling home with solar lease” and “solar lease vs. purchase”. Read what your customer’s will certainly read when they do 30 minutes of study online prior to dedicating to a 20 year agreement. Maybe you’ll now understand why you get numerous cancellations and why if you don’t seal the deal on the very first appointment you’ve got nearly no possibility of closing it later. Why not change your method do exactly what’s right for the customer and get on board with a business that supplies market leading value (cost + quality + service).
The Solar Lease in Irvine CA 92730 or PPA Sales Pitch typically consists of 6 bottom lines. We went over each below.
1. Go Solar and Pay Nothing! Or no cash out of pocket.
Signing a 20 year agreement where you guarantee to pay X hundred dollars per month is hardly paying absolutely nothing. If you accumulate all those regular monthly 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 factor in the interest paid on the solar loan. Lots of absolutely no cash down solar loans are available. If you have the credit history to qualify for the lease you can use the bank’s money to finance your solar system with absolutely no cash down.
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2. No worries. The leasing/PPA company in Irvine CA 92730 is responsible for all repair and maintenance on the system.
The renting business will not clean your photovoltaic panels which has to do with only upkeep needed on a solar system. Solar systems are very low upkeep with no moving parts and have incredibly long maker’s warranties and performance assurances. 25 years with a microinverter based system, that’s longer than the leasing business’ guarantee. A lot of tier 1 solar equipment manufacturers are bigger and more solvent than the solar leasing company by lots of multiples. Those long guarantees are backed up by a 20 year bumper to bumper guarantee from Solar Symphony.
3. Insurance coverage– go solar with a lease and the leasing company insures the system.
Purchase a system and the solar system is covered under your property owner’s policy for a simply 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 monitoring for the life of the system, using the very same monitoring equipment used by the leasing business.
5. Simply sign a contract and the leasing business does everything else.
When buying a system you also just sign a contract and the solar service providers does everything else. Distinction is the leasing companies agreement is 17 pages (fine print) and the solar specialist’s contract is 2 pages.
6. A lease does not hit your personal credit. Doesn’t impact your financial obligation to income ratio.
This might be the only true advantage of the lease however it comes at an awefully high price. If this is one of your major concerns there are funding options for a purchase (PACE and HERO) that likewise don’t hit your personal credit or affect your debt to earnings ratio. And those programs permit virtually any property owner to go solar no matter their credit score.
Now for the six major drawbacks to a solar lease in Irvine CA 92730 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 offering them a guaranteed 20 year capital!
2. Now you have 2 energy expenses not just one! In essence the leasing business ends up being a 2nd utility. So, sign a solar lease and now you have 2 energy companies you need to pay each month.
3. Many leases or PPAs bring an annual expense escalator, typically 2.9 %. So while you may be saving money today in a numerous years you won’t be.
4. You will not be able to assert the 30 % federal tax credit and any relevant cash refunds. You also won’t be able to assert any tax deductible interest on solar loan payments (HELOC or PACE).
5. You never get to complimentary power with a lease or PPA. In contrast, if you buy a solar system once the solar loan is paid off you can delight in complimentary electricity 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 presume the lease and terms. If you read any of the above you can probably see why an educated customer would not be interested in presuming the commitments of your lease. This is particularly real if the lease is 7 or more years of ages and the annual cost escalator in the lease has now raised the expense of electrical power to equal or more than the cost of electrical power from the utility.