Before you sign your name to a solar panel lease on your house in Lincoln Acres CA 91947 you have to understand exactly what you are actually getting into. If you’re in the business of selling solar leases possibly you must attempt Googling this, “benefits of solar lease” Read all of the page one results and see exactly what your consumer’s are reading if they do even a percentage of homework. You also may attempt Googling, “selling home with solar lease” and “solar lease vs. buy”. Read exactly what your customer’s will check out when they do 30 minutes of research online before committing 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 consultation you’ve got virtually no possibility of closing it later on. Why not alter your technique do exactly what’s right for the client and get on board with a company that supplies market leading value (cost + quality + service).
The Solar Lease in Lincoln Acres CA 91947 or PPA Sales Pitch typically includes 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 where you assure to pay X hundred dollars per month is barely paying nothing. If you add up all those month-to-month payments throughout the term of the contract you’ll be paying 2 to 3 times what you would have paid buying the solar system even if you consider the interest paid on the solar loan. Lots of absolutely no money down solar loans are readily available. If you have the credit history to qualify for the lease you can use the bank’s cash to finance your solar system with no cash down.
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2. No worries. The leasing/PPA company in Lincoln Acres CA 91947 is responsible for all maintenance and repairs on the system.
The renting business will not clean your photovoltaic panels which is about only maintenance used on a solar system. Solar systems are exceptionally low upkeep without any moving parts and come with extremely long maker’s service warranties and efficiency assurances. 25 years with a microinverter based system, that’s longer than the leasing business’ assurance. A lot of tier 1 solar devices producers are larger and more financially stable than the solar leasing company by many multiples. Those long guarantees are supported by a 20 year bumper to bumper guarantee from Solar Symphony.
3. Insurance– go solar with a lease and the leasing company guarantees the system.
Purchase a system and the solar system is covered under your homeowner’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 likewise get keeping track of for the life of the system, utilizing the very same tracking equipment utilized by the renting company.
5. Just sign a contract and the leasing business does everything else.
When acquiring a system you likewise just sign a contract and the solar professionals does everything else. Difference is the leasing companies agreement is 17 pages (small print) and the solar contractor’s agreement is 2 pages.
6. A lease does not hit your individual credit. Doesn’t impact your debt to income ratio.
This might be the only real benefit of the lease but it comes at an awefully high cost. If this is one of your main issues there are funding choices for a purchase (PACE and HERO) that also do not hit your individual credit or impact your financial obligation to earnings ratio. And those programs permit virtually any house owner to go solar no matter their credit rating.
Now for the six major downsides to a solar lease in Lincoln Acres CA 91947 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 purchasing solar on your roofing! You’re just providing them an ensured 20 year cash flow!
2. Now you have two energy expenses not just one! In essence the renting company ends up being a 2nd energy. So, sign a solar lease and now you have 2 energy companies you need to pay each month.
3. A lot of leases or PPAs lug an annual cost escalator, generally 2.9 %. So while you may be saving money today in a several years you will not be.
4. You won’t have the ability to declare the 30 % federal tax credit and any suitable money discounts. You likewise won’t have the ability to assert any tax deductible interest on solar loan payments (HELOC or PACE).
5. You never ever get to complimentary power with a lease or PPA. In contrast, if you purchase a solar system once the solar loan is settled you can take pleasure in totally free electrical power from the sun for 10– 15 years depending upon 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 use the brand-new owner to assume the lease and terms. If you read any of the above you can most likely see why an educated consumer would not have an interest in presuming the obligations of your lease. This is particularly real if the lease is 7 or more years of ages and the annual expense escalator in the lease has now raised the expense of electricity to equivalent or more than the expense of electrical power from the energy.