Before you sign your name to a solar panel lease on your home in Lemon Grove CA 91945 you have to comprehend exactly what you are truly getting into. If you’re in the business of selling solar leases maybe you need to try Googling this, “benefits of solar lease” Read all of the page one results and see exactly what your client’s are checking out if they do even a percentage of homework. You also may attempt Googling, “selling home with solar lease” and “solar lease vs. purchase”. Read exactly what your client’s will check out when they do 30 minutes of research online prior to committing to a 20 year agreement. Perhaps you’ll now comprehend why you get a lot of cancellations and why if you don’t seal the deal on the first visit you’ve got almost no opportunity of closing it later on. Why not alter your approach do exactly what’s right for the client and get on board with a business that provides market leading value (rate + quality + service).
The Solar Lease in Lemon Grove CA 91945 or PPA Sales Pitch normally consists of six main points. We talked about each below.
1. Go Solar and Pay Nothing! Or no money out of pocket.
Signing a 20 year contract in which you promise to pay X hundred dollars per month is hardly paying absolutely 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 factor in the interest paid on the solar loan. Many absolutely no money down solar loans are available. If you have the credit history to get the lease you can utilize the bank’s cash to fund your solar system with absolutely no money down.
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2. No concerns. The leasing/PPA company in Lemon Grove CA 91945 is responsible for all maintenance and repairs on the system.
The renting company will certainly not clean your solar panels which has to do with just maintenance needed on a solar system. Solar systems are exceptionally low upkeep without any moving parts and have extremely long producer’s service warranties and performance guarantees. 25 years with a microinverter based system, that’s longer than the leasing companies’ warranty. A lot of tier 1 solar equipment manufacturers are bigger and more solvent than the solar leasing business by numerous multiples. Those long guarantees are backed up by a 20 year bumper to bumper guarantee from Solar Symphony.
3. Insurance– go solar with a lease and the renting 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 renting business monitors your system for the life of the lease/PPA.
When you acquire a system you likewise get monitoring for the life of the system, making use of the same monitoring equipment used by the renting business.
5. Simply sign a contract and the leasing business does everything else.
When buying a system you likewise just sign an agreement and the solar contractors does everything else. Distinction is the leasing companies contract is 17 pages (fine print) and the solar contractor’s contract is 2 pages.
6. A lease does not strike your individual credit. Does not impact your debt to income ratio.
This may be the only real advantage of the lease but it comes at an awefully high price. If this is one of your main concerns there are funding options for a purchase (PACE and HERO) that also do not hit your individual credit or influence your financial obligation to earnings ratio. And those programs enable almost any homeowner to go solar regardless of their credit rating.
Now for the six primary disadvantages to a solar lease in Lemon Grove CA 91945 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 investing in solar on your roof! You’re just supplying them a guaranteed 20 year capital!
2. Now you have 2 utility costs not simply one! In essence the leasing business ends up being a second utility. So, sign a solar lease and now you have two utility companies you have to pay each month.
3. Most leases or PPAs lug a yearly expense escalator, normally 2.9 %. So while you may be conserving money today in a several years you will not be.
4. You won’t have the ability to assert the 30 % federal tax credit and any appropriate cash rebates. You likewise will not be able to assert any tax deductible interest on solar loan payments (HELOC or PACE).
5. You never get to 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 enjoy complimentary 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 troublesome. Solar leases use the new owner to presume the lease and terms. If you check out 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 especially true if the lease is 7 or more years old and the yearly cost escalator in the lease has now raised the expense of electricity to equal or more than the cost of electrical energy from the utility.