Before you sign your name to a solar panel lease on your house in La Mesa CA 91944 you need to understand exactly what you are truly getting into. If you’re in the business of selling solar leases perhaps you need to try Googling this, “benefits of solar lease” Read all of the page one results and see what your client’s are reading if they do even a percentage of homework. You also might try Googling, “selling home with solar lease” and “solar lease vs. purchase”. Read exactly what your consumer’s will check out when they do 30 minutes of research online before dedicating to a 20 year agreement. Perhaps you’ll now comprehend why you get a lot of cancellations and why if you do not seal the deal on the first visit you’ve got almost no chance of closing it later. Why not change your strategy do exactly what’s right for the client and get on board with a company that provides market leading value (cost + quality + service).
The Solar Lease in La Mesa CA 91944 or PPA Sales Pitch generally consists of six 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 guarantee to pay X hundred dollars per month is barely paying absolutely nothing. If you accumulate all those regular monthly payments during the term of the contract you’ll be paying 2 to 3 times what you would have paid purchasing the solar system even if you consider the interest paid on the solar loan. Many zero cash down solar loans are offered. If you have the credit history to get the lease you can make use of the bank’s cash to fund your solar system with no cash down.
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2. No fears. The leasing/PPA business in La Mesa CA 91944 is accountable for all repair and maintenance on the system.
The renting company will certainly not clean your solar panels which is about only upkeep used on a solar system. Solar systems are very low upkeep without any moving parts and include very long producer’s guarantees and efficiency assurances. 25 years with a microinverter based system, that’s longer than the leasing companies’ assurance. A lot of tier 1 solar equipment makers are larger and more solvent than the solar leasing business by numerous multiples. Those long service warranties are supported by a 20 year bumper to bumper service warranty from Solar Symphony.
3. Insurance coverage– go solar with a lease and the renting 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. Tracking– the leasing company monitors your system for the life of the lease/PPA.
When you purchase a system you also get keeping an eye on for the life of the system, utilizing the exact same tracking equipment made use of by the leasing company.
5. Just sign an agreement and the renting business does everything else.
When acquiring a system you also just sign a contract and the solar service providers does everything else. Difference is the leasing business agreement is 17 pages (fine print) and the solar service provider’s contract is 2 pages.
6. A lease does not strike your individual credit. Does not influence your financial obligation to income ratio.
This may be the only true benefit of the lease but it comes at an awefully high cost. If this is one of your major issues there are financing choices for a purchase (PACE and HERO) that also don’t strike your personal credit or impact your debt to earnings ratio. And those programs allow virtually any homeowner to go solar regardless of their credit score.
Now for the six main disadvantages to a solar lease in La Mesa CA 91944 or PPA.
1. A lease is a 20 year liability. It is not a possession or a financial investment in solar. The solar leasing companies are investing in solar on your roofing system! You’re just supplying them an ensured 20 year cash flow!
2. Now you have 2 utility expenses not just one! In essence the leasing company becomes a second energy. So, sign a solar lease and now you have two energy companies you need to pay monthly.
3. The majority of leases or PPAs carry an annual expense escalator, typically 2.9 %. So while you may be conserving money today in a several years you won’t be.
4. You won’t have the ability to assert the 30 % federal tax credit and any appropriate money discounts. You also will not have the ability to claim 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 purchase a solar system once the solar loan is settled you can delight in complimentary electrical energy from the sun for 10– 15 years depending upon the length of the solar loan.
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6. Selling your home with a solar lease or PPA can be bothersome. Solar leases require the brand-new owner to assume the lease and terms. If you read any of the above you can most likely see why an informed customer would not be interested in assuming the obligations 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 actually now raised the cost of electrical energy to equal or more than the cost of electricity from the utility.