Before you sign your name to a solar panel lease on your house in Mountain Center CA 92561 you need to comprehend what you are truly getting into. If you’re in the business of selling solar leases perhaps you must try Googling this, “benefits of solar lease” Read all the page one results and see exactly what your customer’s are reading if they do even a percentage of homework. You also may attempt Googling, “selling home with solar lease” and “solar lease vs. buy”. Read what your consumer’s will check out when they do 30 minutes of research online before committing to a 20 year agreement. Perhaps you’ll now comprehend why you get a lot of cancellations and why if you don’t seal the deal on the very first consultation you’ve got nearly no chance of closing it later. Why not alter your approach do exactly what’s right for the client and get on board with a company that provides market leading value (rate + quality + service).
The Solar Lease in Mountain Center CA 92561 or PPA Sales Pitch normally includes six main points. We went over each below.
1. Go Solar and Pay Nothing! Or no money out of pocket.
Signing a 20 year agreement in which you assure to pay X hundred dollars per month is barely paying nothing. If you accumulate all of those month-to-month payments throughout the regard to the agreement you’ll be paying 2 to 3 times exactly what you would have paid acquiring the solar system even if you factor in the interest paid on the solar loan. Many absolutely no cash down solar loans are available. If you have the credit report to qualify for the lease you can use the bank’s cash to finance your solar system with zero cash down.
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2. No concerns. The leasing/PPA business in Mountain Center CA 92561 is accountable for all repair and maintenance on the system.
The leasing company will certainly not clean your photovoltaic panels which has to do with only maintenance required on a solar system. Solar systems are very low maintenance with no moving parts and feature incredibly long producer’s service warranties and performance warranties. 25 years with a microinverter based system, that’s longer than the leasing companies’ guarantee. Most tier 1 solar equipment manufacturers are bigger and more financially stable than the solar leasing company by numerous multiples. Those long service warranties are backed up by a 20 year bumper to bumper warranty from Solar Symphony.
3. Insurance coverage– go solar with a lease and the renting company guarantees the system.
Purchase a system and the solar system is covered under your property owner’s policy for a just a couple dollars per month.
4. Tracking– the renting business monitors your system for the life of the lease/PPA.
When you acquire a system you likewise get monitoring for the life of the system, utilizing the exact same tracking equipment made use of by the renting company.
5. Simply sign an agreement and the leasing business does everything else.
When purchasing a system you also just sign a contract and the solar contractors does everything else. Difference is the leasing companies agreement is 17 pages (small print) and the solar professional’s contract is 2 pages.
6. A lease does not strike your individual credit. Doesn’t impact your financial obligation to income ratio.
This may be the only true benefit of the lease however it comes at an awefully high price. If this is among your main concerns there are funding alternatives for a purchase (PACE and HERO) that likewise do not strike your personal credit or influence your debt to income ratio. And those programs enable nearly any house owner to go solar despite their credit rating.
Now for the six major drawbacks to a solar lease in Mountain Center CA 92561 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 buying solar on your roofing! You’re simply supplying them a guaranteed 20 year cash flow!
2. Now you have 2 energy costs not just one! In essence the renting company ends up being a second utility. So, sign a solar lease and now you have 2 utility companies you need to pay monthly.
3. Most leases or PPAs bring an annual cost escalator, generally 2.9 %. So while you might be saving cash today in a numerous years you will not be.
4. You will not have the ability to declare the 30 % federal tax credit and any appropriate money discounts. You also will not be able to assert 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 purchase a solar system once the solar loan is paid off you can take pleasure in complimentary electrical energy 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 bothersome. Solar leases need the new owner to presume the lease and terms. If you check out any of the above you can most likely see why an enlightened consumer would not have an interest in presuming the commitments of your lease. This is specifically true if the lease is 7 or more years old and the yearly cost escalator in the lease has now raised the expense of electrical power to equivalent or more than the cost of electrical energy from the utility.