Prior to you sign your name to a solar panel lease on your house in Oceanside CA 92057 you have to understand what you are truly getting into. If you’re in business of offering solar leases perhaps you must attempt Googling this, “benefits of solar lease” Read all the page one results and see what your customer’s are reading if they do even a small amount of research. You also might try Googling, “selling home with solar lease” and “solar lease vs. purchase”. Read exactly what your consumer’s will certainly check out when they do 30 minutes of research online before committing to a 20 year contract. Possibly you’ll now understand why you get numerous cancellations and why if you do not seal the deal on the very first visit you’ve got virtually no opportunity of closing it later. Why not alter your technique do what’s right for the customer and get on board with a company that offers market leading value (cost + quality + service).
The Solar Lease in Oceanside CA 92057 or PPA Sales Pitch generally includes 6 main points. We talked about each below.
1. Go Solar and Pay Nothing! Or no cash out of pocket.
Signing a 20 year agreement where you promise to pay X hundred dollars per month is hardly paying nothing. If you build up all of those monthly payments during the regard to the agreement you’ll be paying 2 to 3 times exactly what you would have paid purchasing the solar system even if you factor in the interest paid on the solar loan. Lots of no cash down solar loans are available. If you have the credit history to qualify for the lease you can make use of the bank’s money to fund your solar system with absolutely no cash down.
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2. No fears. The leasing/PPA company in Oceanside CA 92057 is responsible for all repair and maintenance on the system.
The renting business will not clean your solar panels which is about just maintenance used on a solar system. Solar systems are very low maintenance with no moving parts and include incredibly long producer’s guarantees and performance warranties. 25 years with a microinverter based system, that’s longer than the leasing companies’ guarantee. A lot of tier 1 solar equipment manufacturers are bigger and more solvent than the solar leasing business by many multiples. Those long service warranties are backed up by a 20 year bumper to bumper warranty from Solar Symphony.
3. Insurance– go solar with a lease and the leasing business 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 leasing company 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, making use of the same tracking equipment used by the leasing business.
5. Simply sign a contract and the renting business does everything else.
When acquiring a system you also simply sign a contract and the solar specialists does everything else. Difference is the leasing business contract is 17 pages (small print) and the solar specialist’s contract is 2 pages.
6. A lease does not hit your individual credit. Does not affect your debt to income ratio.
This may be the only real benefit of the lease however it comes at an awefully high rate. If this is one of your main concerns there are financing options for a purchase (PACE and HERO) that also don’t strike your individual credit or impact your financial obligation to income ratio. And those programs allow nearly any house owner to go solar no matter their credit rating.
Now for the six main downsides to a solar lease in Oceanside CA 92057 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 roofing system! You’re simply supplying them an ensured 20 year cash flow!
2. Now you have two energy costs not simply one! In essence the renting company becomes a 2nd utility. So, sign a solar lease and now you have 2 utility companies you have to pay monthly.
3. A lot of leases or PPAs bring a yearly expense escalator, normally 2.9 %. So while you might be conserving cash today in a several years you will not be.
4. You will not be able to assert the 30 % federal tax credit and any appropriate cash refunds. You likewise won’t be able to declare any tax deductible interest on solar loan payments (HELOC or PACE).
5. You never get to totally free power with a lease or PPA. On the other hand, if you acquire a solar system once the solar loan is settled you can delight in totally free 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 troublesome. Solar leases need 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 want assuming the obligations of your lease. This is specifically true if the lease is 7 or more years old and the yearly expense escalator in the lease has actually now raised the cost of electricity to equivalent or more than the cost of electrical energy from the utility.