Before you sign your name to a solar panel lease on your home in Lincoln Acres CA 91947 you have to understand what you are actually getting into. If you’re in business of selling solar leases maybe you need to attempt Googling this, “benefits of solar lease” Read all the page one results and see exactly what your consumer’s are reading if they do even a percentage of research. You also may try Googling, “selling home with solar lease” and “solar lease vs. buy”. Read exactly what your consumer’s will check out when they do 30 minutes of study online prior to committing to a 20 year agreement. Perhaps you’ll now comprehend why you get many cancellations and why if you don’t close the deal on the very first consultation you’ve got nearly no chance of closing it later on. Why not alter your method 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 consists of six main points. We discussed each below.
1. Go Solar and Pay Nothing! Or no money out of pocket.
Signing a 20 year agreement where you guarantee to pay X hundred dollars per month is barely paying nothing. If you add up all of those monthly payments during the regard to the contract you’ll be paying 2 to 3 times what you would have paid acquiring 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 report to qualify for the lease you can utilize the bank’s money to finance your solar system with zero cash down.
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2. No fears. The leasing/PPA business in Lincoln Acres CA 91947 is responsible for all maintenance and repairs on the system.
The leasing business will certainly not clean your photovoltaic panels which is about just maintenance needed on a solar system. Solar systems are very low upkeep with no moving parts and feature extremely long producer’s guarantees and efficiency assurances. 25 years with a microinverter based system, that’s longer than the leasing companies’ guarantee. Many tier 1 solar devices producers are bigger and more financially stable than the solar leasing company by lots of 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 renting business guarantees 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 renting business monitors your system for the life of the lease/PPA.
When you acquire a system you also get keeping an eye on for the life of the system, making use of the very same tracking devices used by the leasing company.
5. Simply sign an agreement and the leasing company does everything else.
When purchasing a system you also just sign an agreement and the solar contractors does everything else. Distinction is the leasing companies agreement is 17 pages (fine print) and the solar contractor’s agreement is 2 pages.
6. A lease does not hit your individual credit. Does not impact your debt to earnings ratio.
This may be the only real advantage of the lease however it comes at an awefully high price. If this is one of your primary concerns there are financing alternatives for a purchase (PACE and HERO) that also do not strike your individual credit or impact your financial obligation to earnings ratio. And those programs enable virtually any property owner to go solar despite their credit score.
Now for the 6 major disadvantages 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 business are buying solar on your roof! You’re just offering them an ensured 20 year capital!
2. Now you have two energy bills not just one! In essence the renting business ends up being a 2nd utility. So, sign a solar lease and now you have two utility business you need to pay each month.
3. A lot of leases or PPAs bring an annual expense escalator, generally 2.9 %. So while you might be saving cash today in a several years you won’t be.
4. You won’t have the ability to declare the 30 % federal tax credit and any suitable money rebates. You likewise won’t have the ability to claim 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 buy a solar system once the solar loan is paid off you can delight in complimentary electricity from the sun for 10– 15 years depending upon the length of the solar loan.
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6. Offering your house with a solar lease or PPA can be bothersome. Solar leases use the new owner to assume the lease and terms. If you check out any of the above you can probably see why an educated customer would not be interested in assuming the responsibilities of your lease. This is specifically true if the lease is 7 or more years of ages and the yearly cost escalator in the lease has now raised the cost of electricity to equal or more than the expense of electrical power from the energy.