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Selling Your Home With a Solar Lease in Riverside CA 92521

Selling Your Home With a Solar Lease in Riverside CA 92521

Problems With Solar Lease in RiversideBefore you sign your name to a solar panel lease on your home in Riverside CA 92521 you need to comprehend exactly what you are really getting into. If you’re in the business of offering solar leases maybe you need to attempt Googling this, “benefits of solar lease” Read all of the page one results and see what your consumer’s are checking out if they do even a percentage of homework. You likewise might try Googling, “selling home with solar lease” and “solar lease vs. buy”. Read what your customer’s will read when they do 30 minutes of research online before dedicating to a 20 year contract. Perhaps you’ll now comprehend why you get numerous cancellations and why if you do not seal the deal on the very first consultation you’ve got virtually no chance of closing it later on. Why not change your strategy do what’s right for the consumer and get on board with a company that offers market leading value (rate + quality + service).

The Solar Lease in Riverside CA 92521 or PPA Sales Pitch typically includes 6 main points. We discussed each below.

1. Go Solar and Pay Nothing! Or no money out of pocket.

Signing a 20 year agreement where you guarantee to pay X hundred dollars per month is hardly paying absolutely nothing. If you accumulate all those regular monthly payments during 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 factor in the interest paid on the solar loan. Lots of absolutely no cash down solar loans are available. If you have the credit report to get the lease you can make use of the bank’s money to finance your solar system with no cash down.

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2. No fears. The leasing/PPA business in Riverside CA 92521 is accountable for all maintenance and repairs on the system.

The leasing company will certainly not clean your solar panels which is about only maintenance needed on a solar system. Solar systems are exceptionally low upkeep without any moving parts and have extremely long producer’s guarantees and efficiency warranties. 25 years with a microinverter based system, that’s longer than the leasing business’ assurance. A lot of tier 1 solar equipment producers are bigger and more solvent than the solar leasing business by numerous multiples. Those long service warranties are backed up by a 20 year bumper to bumper guarantee from Solar Symphony.

3. Insurance– 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 just a couple dollars per month.

4. Monitoring– the leasing 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 monitoring devices utilized by the renting company.

5. Simply sign a contract and the leasing business does everything else.

When acquiring a system you also just 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 doesn’t strike your individual credit. Does not affect your debt to earnings 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 primary issues there are financing options for a purchase (PACE and HERO) that likewise don’t hit your individual credit or affect your financial obligation to earnings ratio. And those programs allow nearly any property owner to go solar regardless of their credit rating.

Now for the six major disadvantages to a solar lease in Riverside CA 92521 or PPA.

1. A lease is a 20 year liability. It is not a possession or a financial investment in solar. The solar leasing business are investing in solar on your roofing! You’re simply offering them a guaranteed 20 year cash flow!

2. Now you have 2 energy bills not just one! In essence the renting company becomes a second utility. So, sign a solar lease and now you have 2 utility business you need to pay monthly.

3. Many leases or PPAs lug an annual 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 declare the 30 % federal tax credit and any applicable money refunds. You also will not have the ability to claim any tax deductible interest on solar loan payments (HELOC or PACE).

5. You never get to free 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 enjoy free electrical power from the sun for 10– 15 years depending upon 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 require the brand-new owner to presume the lease and terms. If you read any of the above you can probably see why an informed consumer would not be interested in presuming the obligations of your lease. This is especially real if the lease is 7 or more years of ages and the annual cost escalator in the lease has now raised the cost of electrical energy to equal or more than the cost of electrical power from the energy.

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