Before you sign your name to a solar panel lease on your home in Pauma Valley CA 92061 you have to comprehend what you are really getting into. If you’re in the business of offering solar leases maybe you must attempt Googling this, “benefits of solar lease” Read all of the page one results and see what your client’s are checking out 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 client’s will check out when they do 30 minutes of study online before dedicating to a 20 year agreement. Possibly you’ll now comprehend why you get a lot of cancellations and why if you do not close the deal on the very first appointment you’ve got nearly no chance of closing it later on. Why not alter your technique do what’s right for the client and get on board with a company that offers market leading value (rate + quality + service).
The Solar Lease in Pauma Valley CA 92061 or PPA Sales Pitch generally includes 6 main points. We talked about each below.
1. Go Solar and Pay Nothing! Or no cash out of pocket.
Signing a 20 year agreement in which you promise to pay X hundred dollars per month is hardly paying nothing. If you accumulate all of those monthly payments throughout the regard to the agreement 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 zero cash down solar loans are offered. If you have the credit score to get approved for the lease you can utilize the bank’s money to finance your solar system with zero money down.
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2. No concerns. The leasing/PPA business in Pauma Valley CA 92061 is liable for all repair and maintenance on the system.
The renting business will not clean your photovoltaic panels which is about just maintenance required on a solar system. Solar systems are very low maintenance without any moving parts and feature incredibly long maker’s service warranties and performance guarantees. 25 years with a microinverter based system, that’s longer than the leasing business’ assurance. Most tier 1 solar equipment manufacturers are larger and more financially stable than the solar leasing business by lots of multiples. Those long guarantees are supported by a 20 year bumper to bumper guarantee from Solar Symphony.
3. Insurance– 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. Tracking– the renting company monitors your system for the life of the lease/PPA.
When you acquire a system you also get keeping an eye on for the life of the system, making use of the exact same tracking equipment used by the leasing business.
5. Just sign an agreement and the renting company does everything else.
When acquiring a system you also simply sign a contract and the solar professionals does everything else. Difference is the leasing companies contract is 17 pages (fine print) and the solar professional’s contract is 2 pages.
6. A lease does not strike your individual credit. Doesn’t influence your debt to income ratio.
This may be the only true benefit of the lease but it comes at an awefully high cost. If this is among your main issues there are financing choices for a purchase (PACE and HERO) that also do not hit your personal credit or impact your debt to income ratio. And those programs enable almost any house owner to go solar no matter their credit rating.
Now for the 6 major downsides to a solar lease in Pauma Valley CA 92061 or PPA.
1. A lease is a 20 year liability. It is not a possession or an investment in solar. The solar leasing companies are investing in solar on your roof! You’re just supplying 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 energy. So, sign a solar lease and now you have two utility business you have to pay each month.
3. A lot of leases or PPAs bring an annual cost escalator, generally 2.9 %. So while you may be conserving cash today in a numerous years you will not be.
4. You will not be able to assert the 30 % federal tax credit and any suitable cash rebates. You also won’t have the ability to assert any tax deductible interest on solar loan payments (HELOC or PACE).
5. You never get to free power with a lease or PPA. In contrast, if you buy a solar system once the solar loan is paid off you can enjoy free electrical energy from the sun for 10– 15 years depending upon the length of the solar loan.
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6. Offering your home with a solar lease or PPA can be problematic. Solar leases require the brand-new owner to assume the lease and terms. If you check out any of the above you can probably see why an educated consumer would not have an interest in presuming the obligations of your lease. This is particularly real if the lease is 7 or more years of ages and the yearly cost escalator in the lease has now raised the cost of electrical power to equal or more than the cost of electricity from the energy.