Before you sign your name to a solar panel lease on your house in Riverside CA 92516 you have to comprehend what you are actually getting into. If you’re in the business of selling solar leases perhaps you must try Googling this, “benefits of solar lease” Read all the page one results and see exactly what your consumer’s are reading if they do even a small amount of research. You likewise might attempt Googling, “selling home with solar lease” and “solar lease vs. purchase”. Read exactly what your consumer’s will certainly read when they do 30 minutes of study online before committing to a 20 year contract. Perhaps you’ll now understand why you get a lot of cancellations and why if you do not close the deal on the very first visit you’ve got practically no chance of closing it later. Why not alter your strategy do what’s right for the customer and get on board with a company that offers industry leading value (cost + quality + service).
The Solar Lease in Riverside CA 92516 or PPA Sales Pitch generally consists of 6 bottom lines. We went over each below.
1. Go Solar and Pay Nothing! Or no cash out of pocket.
Signing a 20 year contract in which you guarantee to pay X hundred dollars per month is barely paying nothing. If you add up all those monthly payments throughout the regard to the contract 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. Lots of no money down solar loans are offered. If you have the credit history to get approved for the lease you can utilize the bank’s money to finance your solar system with no money down.
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2. No worries. The leasing/PPA company in Riverside CA 92516 is accountable for all maintenance and repairs on the system.
The leasing company will not clean your solar panels which has to do with just maintenance required on a solar system. Solar systems are extremely low upkeep with no moving parts and have very long manufacturer’s service warranties and performance warranties. 25 years with a microinverter based system, that’s longer than the leasing companies’ warranty. Most tier 1 solar devices makers are larger and more solvent than the solar leasing business by lots of multiples. Those long warranties are supported by a 20 year bumper to bumper service warranty from Solar Symphony.
3. Insurance coverage– go solar with a lease and the leasing business insures the system.
Purchase a system and the solar system is covered under your homeowner’s policy for a just a couple dollars per month.
4. Tracking– the renting business monitors your system for the life of the lease/PPA.
When you buy a system you likewise get keeping track of for the life of the system, utilizing the exact same monitoring devices made use of by the leasing business.
5. Just sign a contract and the renting business does everything else.
When purchasing a system you also simply sign an agreement and the solar contractors does everything else. Difference is the leasing business agreement is 17 pages (fine print) and the solar service provider’s contract is 2 pages.
6. A lease does not hit your personal credit. Does not affect your debt to income ratio.
This might be the only real advantage of the lease however it comes at an awefully high rate. If this is one of your major issues there are funding options for a purchase (PACE and HERO) that also do not hit your individual credit or affect your financial obligation to income ratio. And those programs allow almost any homeowner to go solar regardless of their credit score.
Now for the six primary drawbacks to a solar lease in Riverside CA 92516 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 system! You’re simply supplying them an ensured 20 year capital!
2. Now you have 2 utility expenses not just one! In essence the renting company ends up being a 2nd energy. So, sign a solar lease and now you have 2 utility companies you have to pay monthly.
3. Most leases or PPAs bring a yearly expense escalator, generally 2.9 %. So while you may be saving cash today in a numerous years you will not be.
4. You won’t have the ability to declare the 30 % federal tax credit and any applicable cash refunds. You likewise won’t 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. On the other hand, if you acquire 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 troublesome. 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 obligations of your lease. This is especially true 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 energy to equivalent or more than the cost of electricity from the utility.