Before you sign your name to a solar panel lease on your home in Newport Beach CA 92662 you need to understand exactly what you are truly getting into. If you’re in business of selling solar leases perhaps you should try Googling this, “benefits of solar lease” Read all the page one results and see exactly what your consumer’s are checking out if they do even a percentage of homework. You also might try Googling, “selling home with solar lease” and “solar lease vs. purchase”. Read what your consumer’s will check out when they do 30 minutes of research online before dedicating to a 20 year contract. Perhaps you’ll now understand why you get so many cancellations and why if you don’t seal the deal on the very first consultation you’ve got nearly no possibility of closing it later. Why not change your strategy do what’s right for the consumer and get on board with a business that offers market leading value (cost + quality + service).
The Solar Lease in Newport Beach CA 92662 or PPA Sales Pitch typically consists of 6 bottom lines. We went over each below.
1. Go Solar and Pay Nothing! Or no cash out of pocket.
Signing a 20 year agreement in which you promise to pay X hundred dollars per month is hardly paying nothing. If you add up all of those month-to-month 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 factor in the interest paid on the solar loan. Lots of no money down solar loans are offered. If you have the credit report to get approved for the lease you can make use of the bank’s cash to fund your solar system with absolutely no money down.
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2. No fears. The leasing/PPA business in Newport Beach CA 92662 is responsible for all maintenance and repairs on the system.
The renting company will certainly not clean your photovoltaic panels which has to do with only upkeep needed on a solar system. Solar systems are exceptionally low upkeep without any moving parts and come with extremely long maker’s service warranties and performance assurances. 25 years with a microinverter based system, that’s longer than the leasing business’ guarantee. Many tier 1 solar devices producers are larger and more financially stable than the solar leasing business by many multiples. Those long service warranties are supported by a 20 year bumper to bumper guarantee from Solar Symphony.
3. Insurance coverage– go solar with a lease and the renting business insures 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. Tracking– the leasing business monitors your system for the life of the lease/PPA.
When you purchase a system you likewise get keeping track of for the life of the system, making use of the exact same tracking devices used by the renting business.
5. Just sign a contract and the renting company does everything else.
When buying a system you also simply sign an agreement and the solar service providers does everything else. Distinction is the leasing companies agreement is 17 pages (fine print) and the solar contractor’s contract is 2 pages.
6. A lease does not hit your individual credit. Doesn’t influence your debt to earnings ratio.
This may be the only true benefit of the lease however it comes at an awefully high cost. If this is one of your major issues there are funding alternatives for a purchase (PACE and HERO) that likewise don’t hit your personal credit or influence your financial obligation to earnings ratio. And those programs enable almost any property owner to go solar despite their credit rating.
Now for the six primary downsides to a solar lease in Newport Beach CA 92662 or PPA.
1. A lease is a 20 year liability. It is not a possession or a financial investment in solar. The solar leasing companies are purchasing solar on your roof! You’re just offering them an ensured 20 year cash flow!
2. Now you have 2 utility costs not simply one! In essence the leasing business ends up being a 2nd utility. So, sign a solar lease and now you have two utility business you need to pay monthly.
3. Many leases or PPAs lug an annual expense escalator, generally 2.9 %. So while you may be conserving money today in a several years you won’t be.
4. You will not have the ability to claim the 30 % federal tax credit and any relevant cash rebates. You also 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. In contrast, if you buy a solar system once the solar loan is paid off you can delight in complimentary electricity from the sun for 10– 15 years depending on the length of the solar loan.
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6. Selling your house with a solar lease or PPA can be bothersome. Solar leases require the new owner to assume the lease and terms. If you read any of the above you can probably see why an enlightened customer would not have an interest in presuming the obligations of your lease. This is especially real if the lease is 7 or more years of ages and the yearly cost escalator in the lease has now raised the expense of electrical energy to equal or more than the cost of electrical energy from the utility.