Before you sign your name to a solar panel lease on your home in Orange CA 92864 you need to understand exactly what you are actually getting into. If you’re in the business of selling solar leases perhaps you need to try Googling this, “benefits of solar lease” Read all of the page one results and see what your consumer’s are reading if they do even a percentage of homework. You also might try Googling, “selling home with solar lease” and “solar lease vs. purchase”. Read exactly what your customer’s will read when they do 30 minutes of research online prior to committing to a 20 year contract. Possibly you’ll now comprehend why you get numerous cancellations and why if you don’t close the deal on the very first consultation you’ve got nearly no possibility of closing it later on. Why not change your technique do exactly what’s right for the consumer and get on board with a company that offers industry leading value (rate + quality + service).
The Solar Lease in Orange CA 92864 or PPA Sales Pitch normally consists of six main points. We discussed each below.
1. Go Solar and Pay Nothing! Or no money out of pocket.
Signing a 20 year agreement where you guarantee to pay X hundred dollars per month is hardly paying absolutely nothing. If you build up all of those monthly payments throughout the term of the contract you’ll be paying 2 to 3 times exactly what you would have paid acquiring the solar system even if you consider the interest paid on the solar loan. Lots of zero cash down solar loans are readily available. If you have the credit report to get the lease you can make use of the bank’s cash to finance your solar system with no money down.
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2. No fears. The leasing/PPA company in Orange CA 92864 is accountable for all maintenance and repairs on the system.
The renting business will not clean your solar panels which has to do with only upkeep required on a solar system. Solar systems are extremely low upkeep with no moving parts and have very long manufacturer’s warranties and efficiency assurances. 25 years with a microinverter based system, that’s longer than the leasing companies’ assurance. A lot of tier 1 solar devices manufacturers are bigger and more solvent than the solar leasing company by lots of multiples. Those long warranties are backed up by a 20 year bumper to bumper warranty from Solar Symphony.
3. Insurance coverage– go solar with a lease and the leasing business insures 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 business monitors your system for the life of the lease/PPA.
When you buy a system you also get keeping track of for the life of the system, making use of the same monitoring devices used by the leasing company.
5. Simply sign a contract and the leasing business does everything else.
When purchasing a system you also simply sign a contract and the solar professionals does everything else. Distinction is the leasing business contract is 17 pages (fine print) and the solar service provider’s contract is 2 pages.
6. A lease does not strike your personal credit. Doesn’t affect your financial obligation to income ratio.
This may be the only real advantage of the lease but it comes at an awefully high rate. If this is one of your main issues there are financing options for a purchase (PACE and HERO) that also don’t strike your individual credit or affect your financial obligation to earnings ratio. And those programs permit nearly any homeowner to go solar despite their credit rating.
Now for the six primary disadvantages to a solar lease in Orange CA 92864 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 buying solar on your roofing system! You’re just providing them a guaranteed 20 year cash flow!
2. Now you have 2 energy costs not just one! In essence the leasing business ends up being a 2nd utility. So, sign a solar lease and now you have two utility companies you have to pay each month.
3. A lot of leases or PPAs carry a yearly expense escalator, normally 2.9 %. So while you may be conserving cash today in a several years you will not be.
4. You won’t have the ability to declare the 30 % federal tax credit and any relevant money discounts. You likewise won’t be able to claim 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 buy a solar system once the solar loan is paid off you can get totally free electrical energy 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 use the new owner to presume the lease and terms. If you check out any of the above you can probably see why an informed consumer would not want assuming the obligations of your lease. This is especially true if the lease is 7 or more years of ages and the yearly expense escalator in the lease has actually now raised the expense of electrical power to equal or more than the expense of electrical power from the energy.