Before you sign your name to a solar panel lease on your home in Moreno Valley CA 92557 you have to understand exactly what you are really getting into. If you’re in business of offering solar leases perhaps you should attempt 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 small amount of research. You also may try Googling, “selling home with solar lease” and “solar lease vs. purchase”. Read 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 so many cancellations and why if you do not seal the deal on the very first consultation you’ve got almost no opportunity of closing it later on. Why not alter your strategy do what’s right for the client and get on board with a company that supplies market leading value (rate + quality + service).
The Solar Lease in Moreno Valley CA 92557 or PPA Sales Pitch generally includes 6 bottom lines. We discussed 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 nothing. If you build up all of those monthly payments throughout the regard to the agreement you’ll be paying 2 to 3 times exactly what you would have paid buying the solar system even if you consider the interest paid on the solar loan. Lots of no cash down solar loans are available. If you have the credit score to get approved for the lease you can use the bank’s money to finance your solar system with no cash down.
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2. No worries. The leasing/PPA business in Moreno Valley CA 92557 is responsible for all maintenance and repairs on the system.
The renting business will certainly not clean your photovoltaic panels which has to do with just maintenance needed on a solar system. Solar systems are incredibly low maintenance with no moving parts and include very long manufacturer’s guarantees and efficiency warranties. 25 years with a microinverter based system, that’s longer than the leasing companies’ warranty. Many tier 1 solar equipment manufacturers 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 service warranty from Solar Symphony.
3. Insurance coverage– go solar with a lease and the renting company insures 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. 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 very same tracking equipment used by the renting company.
5. Just sign a contract and the renting company does everything else.
When buying a system you likewise simply sign a contract and the solar contractors does everything else. Distinction is the leasing business agreement is 17 pages (small print) and the solar specialist’s agreement is 2 pages.
6. A lease does not hit your individual credit. Doesn’t influence your debt to income ratio.
This might be the only real advantage of the lease but it comes at an awefully high cost. If this is among your major concerns there are funding choices for a purchase (PACE and HERO) that likewise do not strike your personal credit or affect your financial obligation to earnings ratio. And those programs allow virtually any house owner to go solar no matter their credit rating.
Now for the six major drawbacks to a solar lease in Moreno Valley CA 92557 or PPA.
1. A lease is a 20 year liability. It is not an asset or a financial investment in solar. The solar leasing business are investing in solar on your roofing! You’re just supplying them an ensured 20 year cash flow!
2. Now you have two utility bills not just one! In essence the leasing company ends up being a 2nd energy. So, sign a solar lease and now you have two energy companies you have to pay each month.
3. Most leases or PPAs bring a yearly cost escalator, usually 2.9 %. So while you may be saving money today in a numerous years you will not be.
4. You won’t have the ability to claim the 30 % federal tax credit and any appropriate cash refunds. You likewise won’t be able to declare any tax deductible interest on solar loan payments (HELOC or PACE).
5. You never get to complimentary power with a lease or PPA. On the other hand, if you purchase a solar system once the solar loan is settled you can get free electrical energy 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 troublesome. Solar leases need the new owner to assume the lease and terms. If you check out any of the above you can most likely see why an educated customer would not be interested in presuming the responsibilities of your lease. This is especially real if the lease is 7 or more years old and the yearly expense escalator in the lease has now raised the cost of electrical power to equal or more than the cost of electricity from the energy.