Before you sign your name to a solar panel lease on your house in Riverside CA 92505 you need to comprehend exactly what you are really getting into. If you’re in business of selling solar leases perhaps you must try Googling this, “benefits of solar lease” Read all of the page one results and see exactly what your client’s are reading if they do even a percentage of research. You likewise might attempt Googling, “selling home with solar lease” and “solar lease vs. purchase”. Read what your customer’s will check out when they do 30 minutes of research online before dedicating to a 20 year contract. Maybe you’ll now understand why you get a lot of cancellations and why if you do not seal the deal on the very first appointment you’ve got almost no opportunity of closing it later on. Why not alter your method do exactly what’s right for the consumer and get on board with a business that offers industry leading value (price + quality + service).
The Solar Lease in Riverside CA 92505 or PPA Sales Pitch usually consists of 6 bottom lines. We discussed each below.
1. Go Solar and Pay Nothing! Or no cash out of pocket.
Signing a 20 year agreement where you promise to pay X hundred dollars per month is hardly paying absolutely nothing. If you build up all of 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 buying the solar system even if you consider the interest paid on the solar loan. Many no cash down solar loans are available. If you have the credit score to get the lease you can make use of the bank’s cash to fund your solar system with zero cash down.
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2. No concerns. The leasing/PPA business in Riverside CA 92505 is responsible for all repair and maintenance on the system.
The renting company will not clean your photovoltaic panels which has to do with just upkeep required on a solar system. Solar systems are incredibly low maintenance without any moving parts and include very long producer’s service warranties and efficiency guarantees. 25 years with a microinverter based system, that’s longer than the leasing business’ assurance. Many tier 1 solar devices makers are larger and more solvent than the solar leasing business by numerous multiples. Those long warranties are supported by a 20 year bumper to bumper guarantee from Solar Symphony.
3. Insurance coverage– go solar with a lease and the renting business guarantees the system.
Purchase a system and the solar system is covered under your homeowner’s policy for a simply a couple dollars per month.
4. Monitoring– the renting business 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, utilizing the very same tracking equipment made use of by the leasing business.
5. Simply sign an agreement and the leasing business does everything else.
When acquiring 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 (fine print) and the solar professional’s contract is 2 pages.
6. A lease doesn’t hit your individual credit. Does not affect your debt to income ratio.
This might be the only true benefit of the lease however it comes at an awefully high cost. If this is one of your major concerns there are financing options for a purchase (PACE and HERO) that also don’t hit your individual credit or influence your debt to income ratio. And those programs enable almost any house owner to go solar regardless of their credit score.
Now for the 6 main downsides to a solar lease in Riverside CA 92505 or PPA.
1. A lease is a 20 year liability. It is not an asset or a financial investment in solar. The solar leasing companies are investing in solar on your roof! You’re just offering them a guaranteed 20 year capital!
2. Now you have 2 energy costs not simply one! In essence the leasing company ends up being a second utility. So, sign a solar lease and now you have two utility business you need to pay monthly.
3. The majority of leases or PPAs carry an annual expense escalator, generally 2.9 %. So while you may be saving money today in a several years you won’t be.
4. You will not have the ability to assert the 30 % federal tax credit and any applicable cash discounts. You likewise 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 paid off you can get totally free electrical power 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 problematic. Solar leases use the brand-new owner to assume the lease and terms. If you read any of the above you can most likely see why an enlightened customer would not want assuming the commitments of your lease. This is specifically real if the lease is 7 or more years of ages and the annual cost escalator in the lease has now raised the expense of electrical energy to equivalent or more than the expense of electrical power from the utility.