Prior to you sign your name to a solar panel lease on your house in Orange CA 92668 you need to comprehend what you are actually getting into. If you’re in the business of selling solar leases maybe 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 percentage of homework. You also may attempt Googling, “selling home with solar lease” and “solar lease vs. buy”. Read what your customer’s will read when they do 30 minutes of study online prior to committing to a 20 year agreement. Maybe you’ll now understand why you get many cancellations and why if you do not close the deal on the very first consultation you’ve got practically no possibility of closing it later on. Why not alter your approach do exactly what’s right for the customer and get on board with a business that offers market leading value (cost + quality + service).
The Solar Lease in Orange CA 92668 or PPA Sales Pitch usually consists of 6 main points. We went over each below.
1. Go Solar and Pay Nothing! Or no cash out of pocket.
Signing a 20 year contract in which you promise to pay X hundred dollars per month is barely paying absolutely nothing. If you add up all those monthly 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. Lots of zero money down solar loans are available. If you have the credit score to qualify for the lease you can utilize the bank’s money to fund your solar system with zero cash down.
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2. No worries. The leasing/PPA business in Orange CA 92668 is accountable for all maintenance and repairs on the system.
The renting business will not clean your solar panels which has to do with just maintenance needed on a solar system. Solar systems are extremely low maintenance with no moving parts and have very long manufacturer’s guarantees and efficiency assurances. 25 years with a microinverter based system, that’s longer than the leasing companies’ warranty. A lot of tier 1 solar devices makers are bigger and more solvent than the solar leasing business by lots of multiples. Those long service warranties are backed up by a 20 year bumper to bumper guarantee from Solar Symphony.
3. Insurance– 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 company monitors your system for the life of the lease/PPA.
When you buy a system you likewise get monitoring for the life of the system, making use of the very same monitoring devices used by the renting business.
5. Just sign a contract and the leasing business does everything else.
When purchasing a system you likewise just sign an agreement and the solar specialists does everything else. Difference is the leasing companies agreement is 17 pages (fine print) and the solar contractor’s agreement is 2 pages.
6. A lease does not hit your personal credit. Doesn’t influence your debt to earnings ratio.
This may be the only true benefit of the lease but it comes at an awefully high cost. If this is one of your major concerns there are financing alternatives for a purchase (PACE and HERO) that also do not hit your individual credit or influence your debt to earnings ratio. And those programs permit practically any property owner to go solar despite their credit score.
Now for the six major downsides to a solar lease in Orange CA 92668 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 simply providing them a guaranteed 20 year cash flow!
2. Now you have 2 energy bills not simply one! In essence the leasing company becomes a 2nd energy. So, sign a solar lease and now you have 2 utility business you need to pay monthly.
3. Most leases or PPAs carry an annual cost escalator, generally 2.9 %. So while you might be saving money today in a several years you will not be.
4. You will not have the ability to claim the 30 % federal tax credit and any applicable cash rebates. You likewise won’t be able to declare 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. In contrast, if you acquire a solar system once the solar loan is settled you can get complimentary electricity from the sun for 10– 15 years depending upon the length of the solar loan.
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6. Selling your house with a solar lease or PPA can be problematic. Solar leases require the new owner to presume the lease and terms. If you check out any of the above you can probably see why an educated customer would not have an interest in assuming the responsibilities of your lease. This is particularly true if the lease is 7 or more years old and the yearly expense escalator in the lease has actually now raised the expense of electrical power to equal or more than the cost of electricity from the utility.