Before you sign your name to a solar panel lease on your house in Mount Laguna CA 91948 you have to comprehend what you are really getting into. If you’re in the business of selling solar leases possibly you need to try Googling this, “benefits of solar lease” Read all the page one results and see what your client’s are reading if they do even a percentage of homework. You also might try Googling, “selling home with solar lease” and “solar lease vs. purchase”. Read exactly what your client’s will certainly check out when they do 30 minutes of study online prior to dedicating to a 20 year agreement. Perhaps you’ll now understand why you get so many cancellations and why if you do not close the deal on the first appointment you’ve got nearly no possibility of closing it later. Why not change your strategy do what’s right for the client and get on board with a company that offers industry leading value (cost + quality + service).
The Solar Lease in Mount Laguna CA 91948 or PPA Sales Pitch typically includes 6 main points. We discussed each below.
1. Go Solar and Pay Nothing! Or no cash out of pocket.
Signing a 20 year agreement where you guarantee to pay X hundred dollars per month is hardly paying nothing. If you accumulate all those monthly payments during the term of the contract 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. Many absolutely no cash down solar loans are offered. If you have the credit report to get approved for the lease you can utilize the bank’s cash to finance your solar system with zero money down.
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2. No worries. The leasing/PPA business in Mount Laguna CA 91948 is accountable for all maintenance and repairs on the system.
The renting company will not clean your photovoltaic panels which is about just maintenance used on a solar system. Solar systems are exceptionally low upkeep without any moving parts and have very long maker’s guarantees and performance assurances. 25 years with a microinverter based system, that’s longer than the leasing business’ guarantee. Most tier 1 solar equipment producers are bigger and more solvent than the solar leasing business by many multiples. Those long warranties 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 homeowner’s policy for a just a couple dollars per month.
4. Monitoring– the leasing business monitors your system for the life of the lease/PPA.
When you purchase a system you also get keeping an eye on for the life of the system, utilizing the exact same tracking devices used by the leasing business.
5. Simply sign an agreement and the renting business does everything else.
When buying a system you also simply sign an agreement and the solar contractors does everything else. Difference is the leasing business contract is 17 pages (fine print) and the solar contractor’s contract is 2 pages.
6. A lease does not hit your individual credit. Does not impact your financial obligation to income ratio.
This might be the only true advantage of the lease but it comes at an awefully high price. If this is among your main issues there are financing options for a purchase (PACE and HERO) that also do not hit your personal credit or impact your financial obligation to income ratio. And those programs allow virtually any house owner to go solar regardless of their credit rating.
Now for the six primary 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 companies are purchasing solar on your roof! You’re simply offering them a guaranteed 20 year capital!
2. Now you have 2 energy bills not just one! In essence the leasing business becomes a 2nd utility. So, sign a solar lease and now you have two energy companies you have to pay monthly.
3. Many leases or PPAs lug a yearly cost escalator, generally 2.9 %. So while you may be saving money today in a numerous years you will not be.
4. You will not be able to declare the 30 % federal tax credit and any appropriate money rebates. You also will not have the ability to claim 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 purchase a solar system once the solar loan is paid off you can delight in free electricity from the sun for 10– 15 years depending on the length of the solar loan.
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6. Offering your house with a solar lease or PPA can be troublesome. Solar leases use the new owner to assume the lease and terms. If you read any of the above you can most likely see why an enlightened customer would not have an interest in presuming the responsibilities of your lease. This is especially true if the lease is 7 or more years of ages and the annual cost escalator in the lease has actually now raised the cost of electrical power to equivalent or more than the cost of electricity from the utility.