Before you sign your name to a solar panel lease on your home in Poway CA 92064 you need to understand what you are truly getting into. If you’re in business of selling solar leases perhaps you should try Googling this, “benefits of solar lease” Read all the page one results and see what your customer’s are reading if they do even a percentage of research. You also might attempt Googling, “selling home with solar lease” and “solar lease vs. buy”. Read exactly what your consumer’s will check out when they do 30 minutes of study online prior to committing to a 20 year agreement. Possibly you’ll now comprehend why you get a lot of cancellations and why if you don’t seal the deal on the first appointment you’ve got nearly no opportunity of closing it later on. Why not change your method do exactly what’s right for the customer and get on board with a business that offers industry leading value (price + quality + service).
The Solar Lease in Poway CA 92064 or PPA Sales Pitch normally consists of six main points. We discussed each below.
1. Go Solar and Pay Nothing! Or no cash out of pocket.
Signing a 20 year contract where you guarantee to pay X hundred dollars per month is barely paying nothing. If you build up all of those monthly payments during the regard to the agreement 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 no money down solar loans are available. If you have the credit report to qualify for the lease you can use the bank’s cash to finance your solar system with no money down.
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2. No worries. The leasing/PPA company in Poway CA 92064 is liable for all repair and maintenance on the system.
The renting company will certainly not clean your photovoltaic panels which has to do with only upkeep used on a solar system. Solar systems are incredibly low maintenance with no moving parts and have exceptionally long producer’s guarantees and efficiency guarantees. 25 years with a microinverter based system, that’s longer than the leasing business’ guarantee. A lot of tier 1 solar devices producers are larger and more financially stable than the solar leasing company by numerous 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 renting business insures the system.
Purchase a system and the solar system is covered under your house owner’s policy for a simply a couple dollars per month.
4. Monitoring– the leasing business monitors your system for the life of the lease/PPA.
When you buy a system you also get keeping an eye on for the life of the system, using the very same tracking devices used by the leasing company.
5. Just sign a contract and the renting company does everything else.
When purchasing a system you also just sign a contract and the solar contractors does everything else. Distinction is the leasing business agreement is 17 pages (small print) and the solar contractor’s agreement is 2 pages.
6. A lease does not hit your individual credit. Does not influence your debt to earnings ratio.
This might be the only real benefit of the lease but it comes at an awefully high cost. If this is one of your main concerns there are funding alternatives for a purchase (PACE and HERO) that likewise don’t strike your personal credit or impact your debt to earnings ratio. And those programs allow virtually any property owner to go solar regardless of their credit rating.
Now for the six major drawbacks to a solar lease in Poway CA 92064 or PPA.
1. A lease is a 20 year liability. It is not an asset or a financial investment in solar. The solar leasing business are buying solar on your roofing! You’re just offering them an ensured 20 year cash flow!
2. Now you have two energy expenses not just one! In essence the renting business becomes a second utility. So, sign a solar lease and now you have two energy companies you need to pay monthly.
3. Many leases or PPAs lug a yearly cost escalator, typically 2.9 %. So while you might be saving cash today in a several years you won’t be.
4. You won’t have the ability to claim the 30 % federal tax credit and any relevant cash rebates. You likewise will not be able 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. In contrast, if you buy a solar system once the solar loan is settled you can take pleasure in complimentary electrical energy from the sun for 10– 15 years depending on the length of the solar loan.
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6. Selling your home with a solar lease or PPA can be troublesome. Solar leases need the new owner to assume the lease and terms. If you check out any of the above you can probably see why an enlightened customer would not want assuming the obligations of your lease. This is specifically true if the lease is 7 or more years old and the yearly cost escalator in the lease has now raised the cost of electrical energy to equal or more than the cost of electricity from the energy.