Prior to you sign your name to a solar panel lease on your home in La Mesa CA 91942 you have to comprehend exactly what you are really getting into. If you’re in the business of selling solar leases maybe you must attempt Googling this, “benefits of solar lease” Read all of the page one results and see exactly what your customer’s are reading if they do even a percentage of research. You likewise might try Googling, “selling home with solar lease” and “solar lease vs. buy”. Read what your client’s will certainly check out when they do 30 minutes of research online prior to committing to a 20 year contract. Maybe you’ll now comprehend why you get a lot of cancellations and why if you do not close the deal on the very first visit you’ve got practically no possibility of closing it later. Why not alter your strategy do exactly what’s right for the client and get on board with a company that offers industry leading value (cost + quality + service).
The Solar Lease in La Mesa CA 91942 or PPA Sales Pitch normally consists of 6 main points. We went over each below.
1. Go Solar and Pay Nothing! Or no cash out of pocket.
Signing a 20 year agreement in which you assure to pay X hundred dollars per month is hardly paying absolutely nothing. If you accumulate all of those regular monthly payments throughout the regard to 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. Many absolutely no money down solar loans are readily available. If you have the credit score to qualify for the lease you can utilize the bank’s money to finance your solar system with absolutely no cash down.
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2. No worries. The leasing/PPA business in La Mesa CA 91942 is responsible for all maintenance and repairs on the system.
The leasing business will not clean your photovoltaic panels which has to do with only maintenance used on a solar system. Solar systems are incredibly low upkeep with no moving parts and come with very long producer’s guarantees and performance warranties. 25 years with a microinverter based system, that’s longer than the leasing business’ assurance. A lot of tier 1 solar devices producers are larger and more financially stable than the solar leasing business by many multiples. Those long service warranties are supported by a 20 year bumper to bumper warranty from Solar Symphony.
3. Insurance– go solar with a lease and the leasing company guarantees the system.
Purchase a system and the solar system is covered under your house owner’s policy for a simply a couple dollars per month.
4. Tracking– the renting business 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 equipment utilized by the leasing business.
5. Just sign a contract and the renting business does everything else.
When acquiring a system you also simply sign an agreement and the solar professionals does everything else. Distinction is the leasing companies agreement is 17 pages (small print) and the solar contractor’s contract is 2 pages.
6. A lease does not strike your individual credit. Doesn’t affect your debt to income ratio.
This might be the only real advantage of the lease but it comes at an awefully high price. If this is one of your primary issues there are funding options for a purchase (PACE and HERO) that also do not strike your personal credit or affect your debt to earnings ratio. And those programs permit almost any homeowner to go solar despite their credit score.
Now for the 6 major drawbacks to a solar lease in La Mesa CA 91942 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 buying solar on your roofing system! You’re just providing them a guaranteed 20 year cash flow!
2. Now you have two energy bills not just one! In essence the leasing company becomes a second utility. So, sign a solar lease and now you have two utility companies you need to pay each month.
3. Many leases or PPAs carry an annual cost escalator, typically 2.9 %. So while you might be conserving money today in a numerous years you won’t be.
4. You won’t be able to declare the 30 % federal tax credit and any relevant money rebates. You likewise 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. On the other hand, if you acquire a solar system once the solar loan is paid off you can get complimentary electrical power from the sun for 10– 15 years depending on the length of the solar loan.
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6. Selling your house with a solar lease or PPA can be problematic. Solar leases need the brand-new owner to presume the lease and terms. If you check out any of the above you can probably see why an enlightened customer would not want presuming the obligations of your lease. This is particularly true if the lease is 7 or more years of ages and the yearly cost escalator in the lease has now raised the cost of electrical power to equivalent or more than the cost of electrical power from the utility.