Before you sign your name to a solar panel lease on your house in Mount Laguna CA 91948 you need to comprehend what you are really getting into. If you’re in the business of selling solar leases possibly you ought to try Googling this, “benefits of solar lease” Read all of the page one results and see what your consumer’s are reading if they do even a small amount of research. You likewise might try Googling, “selling home with solar lease” and “solar lease vs. purchase”. Read exactly what your client’s will check out when they do 30 minutes of research online prior to committing to a 20 year agreement. Possibly you’ll now understand why you get a lot of cancellations and why if you do not close the deal on the very first consultation you’ve got practically no chance 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 industry leading value (rate + quality + service).
The Solar Lease in Mount Laguna CA 91948 or PPA Sales Pitch usually includes 6 main points. We talked about each below.
1. Go Solar and Pay Nothing! Or no cash out of pocket.
Signing a 20 year contract in which you guarantee to pay X hundred dollars per month is barely paying nothing. If you build up all of those monthly payments throughout the term of the agreement 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 available. If you have the credit score to get approved for the lease you can utilize the bank’s cash to finance your solar system with absolutely no money down.
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2. No worries. The leasing/PPA business in Mount Laguna CA 91948 is responsible for all maintenance and repairs on the system.
The leasing company will certainly not clean your photovoltaic panels which is about just upkeep needed on a solar system. Solar systems are extremely low maintenance with no moving parts and come with very long manufacturer’s guarantees and efficiency warranties. 25 years with a microinverter based system, that’s longer than the leasing business’ assurance. Most tier 1 solar devices manufacturers are bigger and more solvent than the solar leasing company by numerous multiples. Those long service warranties are supported by a 20 year bumper to bumper warranty from Solar Symphony.
3. Insurance coverage– go solar with a lease and the leasing business insures 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. Tracking– the leasing company monitors your system for the life of the lease/PPA.
When you buy a system you also get keeping an eye on for the life of the system, utilizing the very same monitoring devices made use of by the renting company.
5. Simply sign a contract and the leasing business does everything else.
When acquiring a system you also simply sign a contract and the solar specialists does everything else. Distinction is the leasing companies contract is 17 pages (small print) and the solar contractor’s contract is 2 pages.
6. A lease doesn’t hit your personal credit. Doesn’t affect your debt to income ratio.
This might be the only real benefit of the lease but it comes at an awefully high rate. If this is one of your main concerns there are financing alternatives for a purchase (PACE and HERO) that also don’t hit your personal credit or impact your debt to income ratio. And those programs permit virtually any house owner to go solar no matter their credit rating.
Now for the 6 major disadvantages to a solar lease in Mount Laguna CA 91948 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 investing in solar on your roof! You’re simply offering them an ensured 20 year capital!
2. Now you have two utility bills not just one! In essence the renting business ends up being a second utility. So, sign a solar lease and now you have 2 utility business you have to pay each month.
3. Many leases or PPAs carry a yearly cost escalator, typically 2.9 %. So while you may be conserving cash today in a numerous years you won’t be.
4. You will not be able to assert the 30 % federal tax credit and any applicable money rebates. You likewise won’t be able to assert any tax deductible interest on solar loan payments (HELOC or PACE).
5. You never ever get to free power with a lease or PPA. In contrast, if you acquire a solar system once the solar loan is paid off you can get complimentary electricity from the sun for 10– 15 years depending on the length of the solar loan.
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6. Offering your home with a solar lease or PPA can be troublesome. Solar leases use the brand-new owner to presume the lease and terms. If you check out any of the above you can most likely see why an informed customer would not want presuming the commitments of your lease. This is specifically true if the lease is 7 or more years old and the annual cost escalator in the lease has actually now raised the cost of electrical energy to equivalent or more than the cost of electricity from the utility.