Before you sign your name to a solar panel lease on your house in Moreno Valley CA 92551 you have to understand exactly what you are truly getting into. If you’re in business of offering solar leases perhaps 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 research. You also may attempt Googling, “selling home with solar lease” and “solar lease vs. buy”. Read what your customer’s will read when they do 30 minutes of research online before dedicating to a 20 year agreement. Maybe you’ll now comprehend why you get many cancellations and why if you don’t close the deal on the first appointment you’ve got practically no opportunity of closing it later. Why not alter your strategy do what’s right for the customer and get on board with a company that provides market leading value (cost + quality + service).
The Solar Lease in Moreno Valley CA 92551 or PPA Sales Pitch typically consists of 6 main points. We went over each below.
1. Go Solar and Pay Nothing! Or no cash out of pocket.
Signing a 20 year agreement in which you guarantee to pay X hundred dollars per month is hardly paying absolutely nothing. If you build up all those month-to-month payments during the term of the contract you’ll be paying 2 to 3 times what you would have paid purchasing the solar system even if you consider the interest paid on the solar loan. Many no cash down solar loans are offered. If you have the credit score to get approved for the lease you can use the bank’s cash to finance your solar system with absolutely no money down.
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2. No fears. The leasing/PPA business in Moreno Valley CA 92551 is accountable for all maintenance and repairs on the system.
The renting company will certainly not clean your solar panels which has to do with only maintenance used on a solar system. Solar systems are extremely low upkeep with no moving parts and include very long maker’s warranties and efficiency warranties. 25 years with a microinverter based system, that’s longer than the leasing companies’ assurance. Most tier 1 solar equipment makers are bigger and more solvent than the solar leasing company by lots of multiples. Those long warranties 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 insures 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. Tracking– the renting business monitors your system for the life of the lease/PPA.
When you buy a system you likewise get monitoring for the life of the system, making use of the same monitoring devices utilized by the renting business.
5. Just sign a contract and the renting business does everything else.
When purchasing a system you also simply sign a contract and the solar specialists does everything else. Difference is the leasing business contract is 17 pages (small print) and the solar professional’s agreement is 2 pages.
6. A lease does not strike your individual credit. Does not affect your debt to earnings ratio.
This might be the only true advantage of the lease however it comes at an awefully high price. If this is among your main concerns there are funding options for a purchase (PACE and HERO) that also do not strike your individual credit or impact your financial obligation to income ratio. And those programs enable nearly any homeowner to go solar regardless of their credit score.
Now for the six main disadvantages to a solar lease in Moreno Valley CA 92551 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 simply providing them an ensured 20 year cash flow!
2. Now you have two utility expenses not just one! In essence the renting business ends up being a 2nd energy. 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 carry an annual cost escalator, usually 2.9 %. So while you might 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 applicable cash rebates. You also will not be able to declare any tax deductible interest on solar loan payments (HELOC or PACE).
5. You never ever get to complimentary 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 take pleasure in totally free electrical power from the sun for 10– 15 years depending on 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 brand-new owner to assume the lease and terms. If you read any of the above you can probably see why an educated customer would not have an interest in presuming the commitments of your lease. This is specifically 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 electrical power to equivalent or more than the cost of electricity from the utility.