Prior to you sign your name to a solar panel lease on your house in Palm Desert CA 92255 you need to comprehend exactly what you are truly getting into. If you’re in the business of selling solar leases perhaps you must try Googling this, “benefits of solar lease” Read all of the page one results and see exactly what your client’s are reading if they do even a small amount of research. You likewise might try Googling, “selling home with solar lease” and “solar lease vs. purchase”. Read exactly what your client’s will certainly read when they do 30 minutes of research online prior to dedicating to a 20 year contract. Perhaps you’ll now understand why you get a lot of cancellations and why if you do not close the deal on the first visit you’ve got almost no chance of closing it later. Why not change your technique do what’s right for the consumer and get on board with a business that supplies industry leading value (cost + quality + service).
The Solar Lease in Palm Desert CA 92255 or PPA Sales Pitch generally includes 6 bottom lines. We discussed 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 barely paying nothing. If you build up all of those monthly payments throughout the regard to the agreement you’ll be paying 2 to 3 times what you would have paid purchasing the solar system even if you factor in the interest paid on the solar loan. Lots of zero cash down solar loans are offered. If you have the credit history to get the lease you can use the bank’s money to fund your solar system with absolutely no money down.
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2. No fears. The leasing/PPA company in Palm Desert CA 92255 is accountable for all maintenance and repairs on the system.
The leasing business will not clean your photovoltaic panels which has to do with only upkeep required on a solar system. Solar systems are very low maintenance with no moving parts and include exceptionally long maker’s warranties and efficiency guarantees. 25 years with a microinverter based system, that’s longer than the leasing companies’ assurance. A lot of tier 1 solar equipment makers are bigger and more solvent than the solar leasing business by numerous multiples. Those long warranties are supported by a 20 year bumper to bumper service warranty from Solar Symphony.
3. Insurance coverage– go solar with a lease and the renting company guarantees the system.
Purchase a system and the solar system is covered under your property owner’s policy for a simply a couple dollars per month.
4. Monitoring– the renting company monitors your system for the life of the lease/PPA.
When you acquire a system you also get keeping track of for the life of the system, making use of the same monitoring equipment utilized by the leasing business.
5. Just sign a contract and the renting company does everything else.
When purchasing a system you also simply sign an agreement and the solar professionals does everything else. Difference is the leasing companies contract is 17 pages (fine print) and the solar specialist’s contract is 2 pages.
6. A lease does not strike your individual credit. Doesn’t impact your debt to income ratio.
This may be the only true benefit of the lease but it comes at an awefully high price. If this is one of your major concerns there are funding alternatives for a purchase (PACE and HERO) that also do not hit your personal credit or influence your debt to income ratio. And those programs allow almost any property owner to go solar regardless of their credit rating.
Now for the six main disadvantages to a solar lease in Palm Desert CA 92255 or PPA.
1. A lease is a 20 year liability. It is not a possession or an investment in solar. The solar leasing business are purchasing solar on your roofing system! You’re simply supplying them a guaranteed 20 year cash flow!
2. Now you have 2 utility expenses not just one! In essence the leasing business becomes a second energy. So, sign a solar lease and now you have 2 utility business you need to pay monthly.
3. Most leases or PPAs carry a yearly cost escalator, usually 2.9 %. So while you might be conserving cash today in a numerous years you won’t be.
4. You won’t be able to claim the 30 % federal tax credit and any appropriate money discounts. You also will not 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 take pleasure in complimentary electrical power 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 bothersome. Solar leases use the brand-new owner to presume the lease and terms. If you read any of the above you can most likely see why an informed customer would not have an interest in presuming the responsibilities of your lease. This is specifically 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 power to equivalent or more than the cost of electrical energy from the utility.