Before you sign your name to a solar panel lease on your home in La Mesa CA 91943 you need to comprehend what you are really getting into. If you’re in the business of selling solar leases perhaps you ought to try Googling this, “benefits of solar lease” Read all the page one results and see exactly what your customer’s are reading if they do even a small amount of homework. You also may try Googling, “selling home with solar lease” and “solar lease vs. purchase”. Read what your consumer’s will certainly read when they do 30 minutes of study online before committing to a 20 year agreement. Maybe you’ll now understand why you get many cancellations and why if you do not close the deal on the very first appointment you’ve got almost no opportunity of closing it later. Why not alter your technique do exactly what’s right for the consumer and get on board with a company that provides industry leading value (price + quality + service).
The Solar Lease in La Mesa CA 91943 or PPA Sales Pitch generally consists of 6 bottom lines. We discussed 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 barely paying absolutely nothing. If you add up 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 no money down solar loans are readily available. If you have the credit report to get the lease you can use the bank’s cash to finance your solar system with no money down.
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2. No concerns. The leasing/PPA company in La Mesa CA 91943 is accountable for all maintenance and repairs on the system.
The leasing company will certainly not clean your solar panels which is about just upkeep used on a solar system. Solar systems are extremely low upkeep with no moving parts and come with incredibly long producer’s guarantees and performance assurances. 25 years with a microinverter based system, that’s longer than the leasing companies’ assurance. The majority of tier 1 solar devices manufacturers are bigger and more financially stable 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 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 business monitors your system for the life of the lease/PPA.
When you buy a system you likewise get monitoring for the life of the system, making use of the exact same tracking devices utilized by the leasing company.
5. Simply sign an agreement and the leasing business does everything else.
When buying a system you also just sign a contract and the solar professionals does everything else. Difference is the leasing business contract is 17 pages (fine print) and the solar specialist’s agreement is 2 pages.
6. A lease does not hit your individual credit. Doesn’t affect your financial obligation to earnings ratio.
This might be the only real benefit of the lease however it comes at an awefully high rate. If this is one of your main issues there are funding alternatives for a purchase (PACE and HERO) that likewise don’t strike your individual credit or impact your debt to income ratio. And those programs permit virtually any property owner to go solar regardless of their credit rating.
Now for the 6 main downsides to a solar lease in La Mesa CA 91943 or PPA.
1. A lease is a 20 year liability. It is not an asset or an investment in solar. The solar leasing business are buying solar on your roofing system! You’re just supplying them an ensured 20 year capital!
2. Now you have two energy expenses not simply one! In essence the renting company ends up being a second energy. So, sign a solar lease and now you have two energy business you have to pay monthly.
3. The majority of leases or PPAs carry a yearly cost escalator, typically 2.9 %. So while you may be conserving money today in a numerous years you won’t be.
4. You won’t have the ability to declare the 30 % federal tax credit and any relevant money refunds. You also won’t have the ability to declare any tax deductible interest on solar loan payments (HELOC or PACE).
5. You never ever get to totally free power with a lease or PPA. In contrast, if you purchase a solar system once the solar loan is paid off you can enjoy free 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 bothersome. 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 obligations of your lease. This is specifically true if the lease is 7 or more years of ages and the yearly expense escalator in the lease has actually now raised the expense of electrical energy to equal or more than the cost of electricity from the energy.