Prior to you sign your name to a solar panel lease on your home in Riverside CA 92503 you need to understand what you are truly getting into. If you’re in business of offering solar leases possibly you must try Googling this, “benefits of solar lease” Read all of the page one results and see what your customer’s are checking out if they do even a percentage of research. You likewise might attempt Googling, “selling home with solar lease” and “solar lease vs. buy”. Read exactly what your client’s will read when they do 30 minutes of research online prior to dedicating to a 20 year agreement. Maybe you’ll now understand 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 opportunity of closing it later. Why not alter your strategy do exactly what’s right for the client and get on board with a business that provides industry leading value (cost + quality + service).
The Solar Lease in Riverside CA 92503 or PPA Sales Pitch usually includes 6 main points. We discussed each below.
1. Go Solar and Pay Nothing! Or no cash out of pocket.
Signing a 20 year agreement in which you guarantee to pay X hundred dollars per month is barely paying absolutely nothing. If you build up all of those regular monthly payments throughout the term of 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. Many no cash down solar loans are readily available. If you have the credit report to get approved for the lease you can use the bank’s money to fund your solar system with no cash down.
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2. No worries. The leasing/PPA company in Riverside CA 92503 is accountable for all maintenance and repairs on the system.
The renting business will certainly not clean your photovoltaic panels which is about only maintenance required on a solar system. Solar systems are very low maintenance with no moving parts and come with extremely long manufacturer’s warranties and performance warranties. 25 years with a microinverter based system, that’s longer than the leasing business’ warranty. A lot of tier 1 solar devices makers are bigger and more solvent than the solar leasing business by many multiples. Those long service warranties are supported by a 20 year bumper to bumper service warranty 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. Monitoring– the leasing company monitors your system for the life of the lease/PPA.
When you purchase a system you likewise get keeping an eye on for the life of the system, making use of the same monitoring equipment made use of by the renting company.
5. Simply sign a contract and the leasing company does everything else.
When purchasing a system you likewise simply sign a contract and the solar specialists does everything else. Distinction is the leasing companies contract is 17 pages (small print) and the solar specialist’s agreement is 2 pages.
6. A lease doesn’t strike your personal credit. Doesn’t impact your financial obligation 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 issues there are financing options for a purchase (PACE and HERO) that also don’t strike your personal credit or affect your financial obligation to earnings ratio. And those programs enable practically any property owner to go solar regardless of their credit rating.
Now for the six primary drawbacks to a solar lease in Riverside CA 92503 or PPA.
1. A lease is a 20 year liability. It is not an asset or an investment in solar. The solar leasing companies are investing in solar on your roofing! You’re simply supplying them a guaranteed 20 year capital!
2. Now you have 2 utility costs not simply 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. A lot of leases or PPAs carry an annual expense escalator, generally 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 applicable cash discounts. You also will not have the ability to assert 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 acquire a solar system once the solar loan is settled you can get free electrical power 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 bothersome. Solar leases use the brand-new owner to assume the lease and terms. If you check out any of the above you can most likely see why an informed customer would not be interested in assuming the obligations of your lease. This is particularly real if the lease is 7 or more years old and the annual expense escalator in the lease has now raised the expense of electrical power to equivalent or more than the expense of electricity from the utility.