Before you sign your name to a solar panel lease on your home in Oceanside CA 92051 you have to understand exactly what you are truly 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 exactly what your customer’s are checking out if they do even a small amount of research. You likewise may attempt Googling, “selling home with solar lease” and “solar lease vs. buy”. Read exactly what your customer’s will certainly read when they do 30 minutes of research online prior to committing to a 20 year contract. Possibly you’ll now understand why you get a lot of cancellations and why if you do not seal the deal on the first visit you’ve got nearly no possibility of closing it later. Why not alter your strategy do exactly what’s right for the customer and get on board with a business that offers industry leading value (cost + quality + service).
The Solar Lease in Oceanside CA 92051 or PPA Sales Pitch typically consists of 6 bottom lines. We went over each below.
1. Go Solar and Pay Nothing! Or no money out of pocket.
Signing a 20 year contract where you guarantee to pay X hundred dollars per month is hardly paying absolutely nothing. If you add up all of those regular monthly payments during the regard to 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. Many no money down solar loans are readily available. If you have the credit score to qualify 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 worries. The leasing/PPA business in Oceanside CA 92051 is liable for all repair and maintenance on the system.
The leasing company will not clean your solar panels which has to do with just upkeep used on a solar system. Solar systems are very low upkeep without any moving parts and feature very long producer’s service warranties and efficiency assurances. 25 years with a microinverter based system, that’s longer than the leasing business’ assurance. The majority of tier 1 solar equipment makers are larger and more solvent than the solar leasing company by many multiples. Those long guarantees are supported by a 20 year bumper to bumper service warranty from Solar Symphony.
3. Insurance– go solar with a lease and the leasing 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 company monitors your system for the life of the lease/PPA.
When you acquire a system you also get monitoring for the life of the system, making use of the same monitoring devices made use of by the leasing business.
5. Simply sign an agreement and the leasing business does everything else.
When purchasing a system you likewise 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 strike your personal credit. Doesn’t affect your financial obligation to income ratio.
This might be the only true advantage of the lease however it comes at an awefully high price. If this is among your main issues there are financing choices for a purchase (PACE and HERO) that also don’t hit your individual credit or impact your debt to income ratio. And those programs allow practically any homeowner to go solar regardless of their credit rating.
Now for the six major downsides to a solar lease in Oceanside CA 92051 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 investing in solar on your roof! You’re simply providing them an ensured 20 year capital!
2. Now you have 2 energy bills not just one! In essence the leasing company becomes a 2nd utility. So, sign a solar lease and now you have 2 energy business you need to pay monthly.
3. Many leases or PPAs bring an annual expense escalator, typically 2.9 %. So while you may be conserving cash today in a numerous years you won’t be.
4. You won’t have the ability to assert the 30 % federal tax credit and any appropriate money discounts. You also won’t be able to assert any tax deductible interest on solar loan payments (HELOC or PACE).
5. You never ever get to totally 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 electrical power 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 problematic. Solar leases require the new owner to assume the lease and terms. If you check out any of the above you can most likely see why an enlightened consumer would not want presuming the responsibilities of your lease. This is particularly real if the lease is 7 or more years old and the yearly expense escalator in the lease has now raised the cost of electricity to equal or more than the cost of electrical power from the energy.