Before you sign your name to a solar panel lease on your house in Laguna Beach CA 92652 you have to understand exactly what you are really getting into. If you’re in business of selling solar leases perhaps you need to try Googling this, “benefits of solar lease” Read all the page one results and see exactly what your client’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 exactly what your client’s will certainly read when they do 30 minutes of research online prior to dedicating to a 20 year contract. Perhaps you’ll now comprehend why you get many cancellations and why if you don’t seal the deal on the first visit you’ve got nearly no chance of closing it later on. Why not change your approach do exactly what’s right for the client and get on board with a business that provides industry leading value (rate + quality + service).
The Solar Lease in Laguna Beach CA 92652 or PPA Sales Pitch generally consists of 6 main points. We talked about each below.
1. Go Solar and Pay Nothing! Or no cash out of pocket.
Signing a 20 year contract where you guarantee to pay X hundred dollars per month is barely paying nothing. If you add up all those month-to-month payments during the term of the agreement you’ll be paying 2 to 3 times exactly what you would have paid acquiring the solar system even if you consider the interest paid on the solar loan. Many zero money down solar loans are readily available. If you have the credit history to qualify for the lease you can make use of the bank’s money to fund your solar system with zero cash down.
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2. No concerns. The leasing/PPA business in Laguna Beach CA 92652 is responsible for all repair and maintenance on the system.
The renting business will certainly not clean your photovoltaic panels which is about only upkeep needed on a solar system. Solar systems are extremely low upkeep with no moving parts and feature incredibly long manufacturer’s warranties and efficiency guarantees. 25 years with a microinverter based system, that’s longer than the leasing business’ warranty. A lot of tier 1 solar devices makers are larger and more financially stable than the solar leasing company by lots of multiples. Those long service warranties are backed up by a 20 year bumper to bumper warranty from Solar Symphony.
3. Insurance– go solar with a lease and the renting company guarantees 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 business 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 exact same tracking devices used by the renting company.
5. Just sign a contract and the leasing business does everything else.
When acquiring a system you also simply sign an agreement and the solar contractors does everything else. Difference is the leasing business agreement is 17 pages (small print) and the solar professional’s agreement is 2 pages.
6. A lease doesn’t strike your individual credit. Doesn’t affect your financial obligation to income ratio.
This might be the only real advantage of the lease but it comes at an awefully high cost. If this is one of your primary concerns there are financing choices for a purchase (PACE and HERO) that also don’t hit your personal credit or affect your debt to earnings ratio. And those programs permit nearly any house owner to go solar despite their credit score.
Now for the 6 main downsides to a solar lease in Laguna Beach CA 92652 or PPA.
1. A lease is a 20 year liability. It is not a possession or an investment in solar. The solar leasing business are purchasing solar on your roofing! You’re simply offering them an ensured 20 year capital!
2. Now you have 2 energy costs not simply one! In essence the renting business ends up being a second energy. So, sign a solar lease and now you have 2 utility business you need to pay each month.
3. Most leases or PPAs bring a yearly expense escalator, typically 2.9 %. So while you might be saving cash today in a numerous years you won’t be.
4. You won’t be able to claim the 30 % federal tax credit and any applicable money discounts. You also will not 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. On the other hand, if you acquire a solar system once the solar loan is paid off you can get free electricity from the sun for 10– 15 years depending upon the length of the solar loan.
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6. Offering your home with a solar lease or PPA can be bothersome. Solar leases require the new owner to assume the lease and terms. If you check out any of the above you can probably see why an informed customer would not have an interest in presuming the obligations of your lease. This is especially real if the lease is 7 or more years of ages and the annual expense escalator in the lease has actually now raised the cost of electricity to equal or more than the expense of electrical power from the utility.