Before you sign your name to a solar panel lease on your home in Newport Beach CA 92659 you have to understand what you are really getting into. If you’re in business of selling solar leases perhaps you ought to try Googling this, “benefits of solar lease” Read all of the page one results and see exactly what your consumer’s are checking out if they do even a small amount of research. You likewise may try Googling, “selling home with solar lease” and “solar lease vs. buy”. Read exactly what your customer’s will read when they do 30 minutes of research online before committing to a 20 year agreement. Possibly you’ll now comprehend why you get numerous cancellations and why if you do not seal the deal on the first visit you’ve got almost no opportunity of closing it later on. Why not change your strategy do what’s right for the customer and get on board with a business that provides industry leading value (rate + quality + service).
The Solar Lease in Newport Beach CA 92659 or PPA Sales Pitch normally consists of six bottom lines. We talked about each below.
1. Go Solar and Pay Nothing! Or no money out of pocket.
Signing a 20 year agreement where you promise to pay X hundred dollars per month is hardly paying absolutely nothing. If you accumulate all those month-to-month payments throughout the regard to the contract you’ll be paying 2 to 3 times exactly what you would have paid buying the solar system even if you factor in the interest paid on the solar loan. Numerous absolutely no cash down solar loans are available. If you have the credit report to get 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 worries. The leasing/PPA business in Newport Beach CA 92659 is accountable for all maintenance and repairs on the system.
The renting 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 without any moving parts and come with extremely long producer’s warranties and efficiency warranties. 25 years with a microinverter based system, that’s longer than the leasing companies’ guarantee. The majority of tier 1 solar equipment manufacturers are larger and more financially stable than the solar leasing business by numerous multiples. Those long service warranties are supported by a 20 year bumper to bumper guarantee from Solar Symphony.
3. Insurance– 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. Monitoring– the renting company monitors your system for the life of the lease/PPA.
When you purchase a system you also get keeping track of for the life of the system, using the same tracking devices used by the leasing company.
5. Just sign an agreement and the renting business does everything else.
When purchasing a system you also just sign an agreement and the solar service providers does everything else. Distinction is the leasing business contract is 17 pages (small print) and the solar specialist’s agreement is 2 pages.
6. A lease doesn’t strike your personal credit. Does not impact your financial obligation to earnings ratio.
This might be the only real benefit of the lease however it comes at an awefully high cost. If this is among your main issues there are funding options for a purchase (PACE and HERO) that also don’t hit your personal credit or impact your financial obligation to income ratio. And those programs permit almost any homeowner to go solar regardless of their credit score.
Now for the six primary drawbacks to a solar lease in Newport Beach CA 92659 or PPA.
1. A lease is a 20 year liability. It is not an asset or an investment in solar. The solar leasing companies are buying solar on your roof! You’re simply offering them a guaranteed 20 year capital!
2. Now you have two energy expenses not simply one! In essence the leasing business becomes a second energy. So, sign a solar lease and now you have two utility companies you need to pay monthly.
3. Many leases or PPAs bring an annual cost escalator, generally 2.9 %. So while you may be conserving cash today in a numerous years you won’t be.
4. You won’t be able to declare the 30 % federal tax credit and any suitable cash rebates. You also won’t have the ability to declare 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 get free electricity from the sun for 10– 15 years depending upon the length of the solar loan.
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6. Selling your home with a solar lease or PPA can be problematic. Solar leases need the brand-new owner to presume the lease and terms. If you read any of the above you can most likely see why an educated customer would not want presuming the obligations of your lease. This is especially 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 power to equivalent or more than the cost of electricity from the energy.