Before you sign your name to a solar panel lease on your home in Rancho Santa Fe CA 92091 you have to comprehend what you are really getting into. If you’re in business of offering solar leases perhaps you should try Googling this, “benefits of solar lease” Read all the page one results and see exactly what your client’s are reading if they do even a percentage of research. You also might try Googling, “selling home with solar lease” and “solar lease vs. buy”. Read exactly what your customer’s will certainly read when they do 30 minutes of research online before committing to a 20 year contract. Maybe you’ll now comprehend why you get numerous cancellations and why if you don’t seal the deal on the very first consultation you’ve got almost no opportunity of closing it later. Why not change your approach do exactly what’s right for the consumer and get on board with a company that provides industry leading value (price + quality + service).
The Solar Lease in Rancho Santa Fe CA 92091 or PPA Sales Pitch normally consists of 6 bottom lines. We talked about each below.
1. Go Solar and Pay Nothing! Or no cash out of pocket.
Signing a 20 year contract in which you assure to pay X hundred dollars per month is barely paying absolutely nothing. If you accumulate all those month-to-month payments throughout the term of the agreement you’ll be paying 2 to 3 times exactly 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 qualify for the lease you can use the bank’s cash to fund your solar system with zero cash down.
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2. No worries. The leasing/PPA company in Rancho Santa Fe CA 92091 is responsible for all repair and maintenance on the system.
The renting company will not clean your solar panels which has to do with just maintenance needed on a solar system. Solar systems are extremely low upkeep with no moving parts and include extremely long manufacturer’s warranties and efficiency warranties. 25 years with a microinverter based system, that’s longer than the leasing business’ assurance. The majority of tier 1 solar equipment makers are bigger and more financially stable than the solar leasing company by many multiples. Those long service warranties 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 property owner’s policy for a just a couple dollars per month.
4. Tracking– the leasing company monitors your system for the life of the lease/PPA.
When you purchase a system you also get keeping track of for the life of the system, using the same tracking equipment used by the renting company.
5. Just sign a contract and the renting business does everything else.
When buying a system you likewise simply sign an agreement and the solar contractors does everything else. Distinction is the leasing companies agreement is 17 pages (small print) and the solar professional’s agreement is 2 pages.
6. A lease does not hit your individual credit. Doesn’t affect your financial obligation 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 issues there are funding choices for a purchase (PACE and HERO) that likewise do not hit your individual credit or affect your debt to income ratio. And those programs enable nearly any house owner to go solar despite their credit rating.
Now for the six main disadvantages to a solar lease in Rancho Santa Fe CA 92091 or PPA.
1. A lease is a 20 year liability. It is not an asset or an investment in solar. The solar leasing business are purchasing solar on your roof! You’re just offering them an ensured 20 year cash flow!
2. Now you have 2 utility costs not simply one! In essence the leasing business becomes a 2nd energy. So, sign a solar lease and now you have 2 utility business you have to pay monthly.
3. A lot of leases or PPAs bring a yearly cost escalator, normally 2.9 %. So while you might be saving money today in a several years you will not be.
4. You will not be able to assert the 30 % federal tax credit and any applicable cash rebates. You also won’t have the ability 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 purchase a solar system once the solar loan is paid off you can delight 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 house with a solar lease or PPA can be bothersome. Solar leases require the brand-new owner to presume the lease and terms. If you read any of the above you can most likely see why an enlightened consumer would not want assuming the commitments of your lease. This is particularly true if the lease is 7 or more years old and the annual cost escalator in the lease has now raised the cost of electrical power to equal or more than the expense of electrical power from the energy.