Before you sign your name to a solar panel lease on your home in Palm Desert CA 92260 you have to comprehend exactly what you are actually getting into. If you’re in business of offering solar leases maybe you should attempt Googling this, “benefits of solar lease” Read all of the page one results and see exactly what your customer’s are checking out if they do even a percentage of research. You also may attempt 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 committing to a 20 year agreement. Perhaps you’ll now comprehend why you get numerous cancellations and why if you do not close the deal on the first visit you’ve got practically no possibility of closing it later on. Why not alter your technique do exactly what’s right for the client and get on board with a business that supplies industry leading value (price + quality + service).
The Solar Lease in Palm Desert CA 92260 or PPA Sales Pitch generally consists of six bottom lines. We discussed each below.
1. Go Solar and Pay Nothing! Or no money out of pocket.
Signing a 20 year contract in which you promise to pay X hundred dollars per month is barely paying nothing. If you add up all of those month-to-month payments throughout the regard to the contract you’ll be paying 2 to 3 times what you would have paid acquiring the solar system even if you consider the interest paid on the solar loan. Many no cash down solar loans are offered. If you have the credit score to qualify for the lease you can use 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 Palm Desert CA 92260 is liable for all maintenance and repairs on the system.
The leasing company will not clean your solar panels which is about only maintenance required on a solar system. Solar systems are very low upkeep with no moving parts and have very long producer’s warranties and performance 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 larger and more financially stable than the solar leasing company by lots of multiples. Those long guarantees are backed up by a 20 year bumper to bumper service warranty from Solar Symphony.
3. Insurance coverage– go solar with a lease and the leasing company 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. Monitoring– the renting company monitors your system for the life of the lease/PPA.
When you buy a system you likewise get keeping an eye on for the life of the system, utilizing the exact same monitoring equipment made use of by the renting company.
5. Just sign a contract and the renting company 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 business contract is 17 pages (fine print) and the solar professional’s agreement is 2 pages.
6. A lease does not hit your personal credit. Doesn’t affect your financial obligation to earnings ratio.
This might be the only real advantage of the lease but it comes at an awefully high price. If this is one of your main concerns there are financing alternatives for a purchase (PACE and HERO) that also don’t strike your personal credit or affect your financial obligation to income ratio. And those programs enable practically any property owner to go solar no matter their credit rating.
Now for the 6 major disadvantages to a solar lease in Palm Desert CA 92260 or PPA.
1. A lease is a 20 year liability. It is not an asset or a financial investment in solar. The solar leasing companies are purchasing solar on your roofing system! You’re simply providing them a guaranteed 20 year cash flow!
2. Now you have two energy bills not just one! In essence the leasing company becomes a 2nd energy. So, sign a solar lease and now you have 2 utility companies you have to pay each month.
3. Most leases or PPAs carry a yearly cost escalator, typically 2.9 %. So while you might be saving cash today in a numerous years you will not be.
4. You will not be able to claim the 30 % federal tax credit and any appropriate cash rebates. 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. 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. Offering 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 most likely see why an informed customer would not have an interest in assuming the obligations 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 cost of electrical power to equivalent or more than the expense of electrical energy from the utility.