Before you sign your name to a solar panel lease on your home in Palm Springs CA 92262 you need to comprehend what you are actually getting into. If you’re in business of offering solar leases perhaps you ought to try Googling this, “benefits of solar lease” Read all the page one results and see exactly what your customer’s are reading if they do even a percentage of research. You likewise may attempt Googling, “selling home with solar lease” and “solar lease vs. purchase”. Read what your consumer’s will check out when they do 30 minutes of study online before dedicating 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 first appointment you’ve got practically no chance of closing it later. Why not change your technique do exactly what’s right for the client and get on board with a business that offers market leading value (cost + quality + service).
The Solar Lease in Palm Springs CA 92262 or PPA Sales Pitch normally includes six main points. We talked about each below.
1. Go Solar and Pay Nothing! Or no money out of pocket.
Signing a 20 year agreement in which you guarantee to pay X hundred dollars per month is barely paying nothing. If you build up all those month-to-month payments during the term of 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. Many zero cash down solar loans are available. If you have the credit report to qualify for the lease you can make use of the bank’s money to finance your solar system with absolutely no cash down.
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2. No fears. The leasing/PPA company in Palm Springs CA 92262 is liable for all repair and maintenance on the system.
The leasing business will certainly not clean your photovoltaic panels which is about only maintenance used on a solar system. Solar systems are extremely low maintenance with no moving parts and have incredibly long producer’s service warranties and performance guarantees. 25 years with a microinverter based system, that’s longer than the leasing business’ warranty. A lot of tier 1 solar devices producers are bigger and more solvent than the solar leasing business by numerous multiples. Those long guarantees 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 homeowner’s policy for a just a couple dollars per month.
4. Tracking– the leasing business monitors your system for the life of the lease/PPA.
When you acquire a system you also get monitoring for the life of the system, making use of the very same tracking devices utilized by the leasing company.
5. Simply sign an agreement and the leasing business does everything else.
When buying a system you also simply sign an agreement and the solar service providers does everything else. Difference is the leasing business contract is 17 pages (small print) and the solar service provider’s agreement is 2 pages.
6. A lease does not strike your personal credit. Does not affect your debt 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 concerns there are funding options for a purchase (PACE and HERO) that also do not hit your personal credit or influence your debt to income ratio. And those programs permit virtually any homeowner to go solar despite their credit rating.
Now for the 6 main disadvantages to a solar lease in Palm Springs CA 92262 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 investing in solar on your roofing system! You’re just supplying them a guaranteed 20 year cash flow!
2. Now you have two energy costs not just one! In essence the renting company ends up being a 2nd energy. So, sign a solar lease and now you have 2 utility business you have to pay each month.
3. Many leases or PPAs bring an annual expense escalator, normally 2.9 %. So while you might be saving money today in a several years you won’t be.
4. You will not be able to claim the 30 % federal tax credit and any appropriate cash rebates. You likewise won’t have the ability to assert any tax deductible interest on solar loan payments (HELOC or PACE).
5. You never ever get to free power with a lease or PPA. On the other hand, if you acquire a solar system once the solar loan is paid off you can take pleasure in free electrical energy from the sun for 10– 15 years depending on the length of the solar loan.
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6. Offering your home with a solar lease or PPA can be troublesome. Solar leases require the brand-new owner to presume the lease and terms. If you check out any of the above you can most likely see why an enlightened customer would not be interested in presuming the responsibilities of your lease. This is particularly real if the lease is 7 or more years old and the yearly cost escalator in the lease has now raised the expense of electrical energy to equivalent or more than the cost of electrical energy from the utility.