Prior to you sign your name to a solar panel lease on your home in Lakeside CA 92040 you have to understand exactly what you are really getting into. If you’re in business of selling solar leases maybe you ought to try Googling this, “benefits of solar lease” Read all of the page one results and see what your consumer’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. buy”. Read what your consumer’s will read when they do 30 minutes of study 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 don’t seal the deal on the very first appointment you’ve got virtually no chance of closing it later. Why not change your approach do exactly what’s right for the customer and get on board with a business that offers market leading value (price + quality + service).
The Solar Lease in Lakeside CA 92040 or PPA Sales Pitch usually consists of 6 bottom lines. We went over each below.
1. Go Solar and Pay Nothing! Or no money out of pocket.
Signing a 20 year agreement in which you assure to pay X hundred dollars per month is barely paying nothing. If you accumulate all those monthly payments throughout 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 factor in the interest paid on the solar loan. Lots of zero money down solar loans are readily available. If you have the credit report to get approved for the lease you can make use of the bank’s cash to fund your solar system with zero cash down.
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2. No worries. The leasing/PPA business in Lakeside CA 92040 is liable for all repair and maintenance on the system.
The leasing company will certainly not clean your photovoltaic panels which is about just maintenance required on a solar system. Solar systems are very low maintenance without any moving parts and have extremely long manufacturer’s service warranties and efficiency warranties. 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 financially stable than the solar leasing business by lots of multiples. Those long warranties are backed up by a 20 year bumper to bumper guarantee from Solar Symphony.
3. Insurance– 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 business monitors your system for the life of the lease/PPA.
When you buy a system you also get keeping an eye on for the life of the system, utilizing the very same tracking devices utilized by the leasing business.
5. Just sign a contract and the leasing company does everything else.
When buying a system you also simply sign an agreement and the solar professionals does everything else. Difference is the leasing business contract is 17 pages (small print) and the solar service provider’s agreement is 2 pages.
6. A lease does not strike your personal credit. Does not influence your financial obligation to earnings ratio.
This may be the only real advantage of the lease however it comes at an awefully high price. If this is among your major concerns there are financing alternatives for a purchase (PACE and HERO) that also do not strike your personal credit or affect your debt to income ratio. And those programs enable virtually any homeowner to go solar despite their credit score.
Now for the six major downsides to a solar lease in Lakeside CA 92040 or PPA.
1. A lease is a 20 year liability. It is not a possession or a financial investment in solar. The solar leasing business are buying solar on your roofing! You’re just providing them a guaranteed 20 year cash flow!
2. Now you have two utility costs not just one! In essence the renting business becomes a second utility. So, sign a solar lease and now you have two utility business you need to pay each month.
3. Many leases or PPAs carry an annual expense escalator, typically 2.9 %. So while you might be saving money today in a several years you won’t be.
4. You will not be able to assert the 30 % federal tax credit and any relevant money refunds. You likewise won’t be able 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 settled you can get complimentary electrical energy 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 use 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 informed consumer would not be interested in presuming the responsibilities of your lease. This is particularly real 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 energy to equal or more than the cost of electrical energy from the utility.