Before you sign your name to a solar panel lease on your home in Lakeview CA 92353 you need to comprehend what you are truly getting into. If you’re in the business of offering solar leases maybe you must try Googling this, “benefits of solar lease” Read all the page one results and see exactly what your customer’s are checking out if they do even a percentage of homework. You also might try Googling, “selling home with solar lease” and “solar lease vs. purchase”. Read what your customer’s will certainly check out when they do 30 minutes of study online before committing to a 20 year contract. Perhaps you’ll now comprehend why you get many cancellations and why if you do not seal the deal on the very first consultation you’ve got practically no opportunity of closing it later. Why not alter your approach do exactly what’s right for the customer and get on board with a business that provides industry leading value (rate + quality + service).
The Solar Lease in Lakeview CA 92353 or PPA Sales Pitch normally includes 6 bottom lines. We talked about each below.
1. Go Solar and Pay Nothing! Or no cash out of pocket.
Signing a 20 year agreement where you promise to pay X hundred dollars per month is hardly paying nothing. If you build up all those monthly payments throughout the regard to 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. Many zero cash down solar loans are offered. If you have the credit report to qualify for the lease you can make use of the bank’s money to finance your solar system with no cash down.
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2. No fears. The leasing/PPA company in Lakeview CA 92353 is accountable for all maintenance and repairs on the system.
The renting business will not clean your solar panels which is about only upkeep needed on a solar system. Solar systems are very low upkeep with no moving parts and come with very long maker’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 producers are larger and more solvent than the solar leasing business by lots of 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 business guarantees the system.
Purchase a system and the solar system is covered under your house owner’s policy for a just a couple dollars per month.
4. Tracking– the leasing business monitors your system for the life of the lease/PPA.
When you purchase a system you likewise get monitoring for the life of the system, utilizing the exact same tracking equipment utilized by the leasing company.
5. Just sign a contract and the leasing business does everything else.
When buying a system you likewise just sign a contract and the solar professionals does everything else. Difference is the leasing companies contract is 17 pages (small print) and the solar service provider’s contract is 2 pages.
6. A lease doesn’t strike your personal credit. Doesn’t impact your debt to income ratio.
This might be the only true advantage of the lease but it comes at an awefully high rate. If this is among your main issues there are financing options for a purchase (PACE and HERO) that also do not strike your personal credit or influence your debt to earnings ratio. And those programs enable virtually any homeowner to go solar no matter their credit score.
Now for the six major drawbacks to a solar lease in Lakeview CA 92353 or PPA.
1. A lease is a 20 year liability. It is not an asset or a financial investment in solar. The solar leasing companies are buying solar on your roof! You’re just providing them a guaranteed 20 year cash flow!
2. Now you have 2 utility costs not just one! In essence the renting business becomes a 2nd energy. So, sign a solar lease and now you have two utility business you need to pay monthly.
3. The majority of leases or PPAs carry a yearly expense 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 assert the 30 % federal tax credit and any applicable money refunds. You also will not have the ability to assert any tax deductible interest on solar loan payments (HELOC or PACE).
5. You never ever get to free power with a lease or PPA. In contrast, if you buy a solar system once the solar loan is settled you can get free electricity 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 need the brand-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 want assuming the obligations of your lease. This is particularly true if the lease is 7 or more years of ages and the yearly expense escalator in the lease has now raised the cost of electricity to equal or more than the cost of electrical power from the utility.