Before you sign your name to a solar panel lease on your home in La Mesa CA 91941 you have to understand what you are truly getting into. If you’re in business of offering solar leases possibly you must try Googling this, “benefits of solar lease” Read all the page one results and see exactly what your consumer’s are checking out if they do even a small amount of homework. You also may attempt Googling, “selling home with solar lease” and “solar lease vs. buy”. Read what your client’s will certainly read when they do 30 minutes of research online prior to committing to a 20 year agreement. Perhaps you’ll now understand why you get a lot of cancellations and why if you do not seal the deal on the first visit you’ve got virtually no opportunity of closing it later on. Why not alter your technique do what’s right for the consumer and get on board with a business that provides industry leading value (price + quality + service).
The Solar Lease in La Mesa CA 91941 or PPA Sales Pitch typically consists of 6 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 absolutely nothing. If you add up all of those month-to-month payments throughout the term of the contract 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 no cash down solar loans are offered. If you have the credit report to qualify for the lease you can use the bank’s cash to finance your solar system with zero money down.
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2. No worries. The leasing/PPA company in La Mesa CA 91941 is liable for all maintenance and repairs on the system.
The leasing business will certainly not clean your solar panels which is about just maintenance used on a solar system. Solar systems are extremely low upkeep with no moving parts and feature extremely long manufacturer’s guarantees and performance warranties. 25 years with a microinverter based system, that’s longer than the leasing companies’ guarantee. Most tier 1 solar devices makers are larger and more solvent than the solar leasing company by numerous multiples. Those long service warranties are backed up by a 20 year bumper to bumper service warranty from Solar Symphony.
3. Insurance coverage– go solar with a lease and the renting 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. 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, utilizing the exact same tracking devices used by the renting company.
5. Simply sign a contract and the leasing business does everything else.
When purchasing a system you also just sign a contract and the solar professionals 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 strike your individual credit. Doesn’t affect your debt to income ratio.
This may be the only true advantage of the lease but it comes at an awefully high price. If this is among your main issues there are financing alternatives for a purchase (PACE and HERO) that also do not hit your personal credit or affect your financial obligation to income ratio. And those programs enable almost any homeowner to go solar despite their credit rating.
Now for the 6 major drawbacks to a solar lease in La Mesa CA 91941 or PPA.
1. A lease is a 20 year liability. It is not an asset or an investment in solar. The solar leasing companies are buying solar on your roofing system! You’re simply offering them a guaranteed 20 year capital!
2. Now you have two energy costs not simply one! In essence the renting business becomes a second energy. So, sign a solar lease and now you have two energy companies you have to pay each month.
3. A lot of leases or PPAs bring a yearly cost escalator, usually 2.9 %. So while you might be saving money today in a numerous years you won’t be.
4. You will not be able to claim the 30 % federal tax credit and any applicable cash discounts. You likewise will not be able 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 acquire a solar system once the solar loan is paid off you can delight in free electrical power from the sun for 10– 15 years depending on the length of the solar loan.
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6. Offering your home with a solar lease or PPA can be troublesome. Solar leases require the new owner to assume the lease and terms. If you read any of the above you can probably see why an informed consumer would not have an interest in presuming the commitments of your lease. This is particularly true if the lease is 7 or more years of ages and the annual expense escalator in the lease has now raised the expense of electricity to equivalent or more than the expense of electrical power from the energy.