Before you sign your name to a solar panel lease on your house in Lemon Grove CA 91946 you have to understand what you are actually 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 the page one results and see what your customer’s are checking out if they do even a small amount of research. You likewise may try Googling, “selling home with solar lease” and “solar lease vs. purchase”. Read exactly what your client’s will certainly check out when they do 30 minutes of research online prior to dedicating to a 20 year contract. Perhaps you’ll now comprehend why you get a lot of cancellations and why if you don’t seal the deal on the first consultation you’ve got practically no possibility of closing it later on. Why not alter your method do exactly what’s right for the client and get on board with a business that offers market leading value (rate + quality + service).
The Solar Lease in Lemon Grove CA 91946 or PPA Sales Pitch usually includes 6 main points. We discussed each below.
1. Go Solar and Pay Nothing! Or no cash out of pocket.
Signing a 20 year contract where you promise to pay X hundred dollars per month is hardly paying nothing. If you add up all those regular monthly payments throughout the regard to 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. Numerous zero cash down solar loans are available. If you have the credit report to qualify for the lease you can utilize 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 Lemon Grove CA 91946 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 required on a solar system. Solar systems are extremely low maintenance with no moving parts and include extremely long producer’s warranties and performance assurances. 25 years with a microinverter based system, that’s longer than the leasing companies’ warranty. Most tier 1 solar equipment manufacturers are bigger and more solvent than the solar leasing business by lots of multiples. Those long guarantees are supported by a 20 year bumper to bumper warranty from Solar Symphony.
3. Insurance coverage– go solar with a lease and the leasing company guarantees the system.
Purchase a system and the solar system is covered under your house owner’s policy for a simply a couple dollars per month.
4. Monitoring– the renting company monitors your system for the life of the lease/PPA.
When you acquire a system you likewise get keeping track of for the life of the system, utilizing the same tracking equipment utilized by the leasing company.
5. Just sign an agreement and the leasing company does everything else.
When acquiring a system you likewise simply sign a contract 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 personal credit. Does not impact your financial obligation to income ratio.
This might be the only true benefit of the lease but it comes at an awefully high price. If this is one of your main concerns there are financing options for a purchase (PACE and HERO) that likewise do not hit your individual credit or impact your debt to income ratio. And those programs allow almost any house owner to go solar no matter their credit rating.
Now for the 6 primary downsides to a solar lease in Lemon Grove CA 91946 or PPA.
1. A lease is a 20 year liability. It is not a possession or an investment in solar. The solar leasing companies are buying solar on your roof! You’re just providing them an ensured 20 year capital!
2. Now you have two utility bills not just one! In essence the leasing business ends up being a 2nd energy. So, sign a solar lease and now you have two energy business you need to pay monthly.
3. The majority of leases or PPAs bring an annual expense escalator, normally 2.9 %. So while you might be saving cash today in a several years you won’t be.
4. You won’t be able to assert the 30 % federal tax credit and any suitable cash refunds. 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. In contrast, if you purchase a solar system once the solar loan is settled you can get totally free electricity 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 troublesome. Solar leases require the new owner to presume 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 commitments of your lease. This is specifically real if the lease is 7 or more years old and the yearly cost escalator in the lease has now raised the cost of electrical energy to equivalent or more than the cost of electricity from the energy.