Before you sign your name to a solar panel lease on your home in San Diego CA 92101 you need to understand what you are really getting into. If you’re in business of offering solar leases possibly you must attempt Googling this, “benefits of solar lease” Read all the page one results and see exactly what your client’s are checking out if they do even a small amount of research. You likewise may try Googling, “selling home with solar lease” and “solar lease vs. buy”. Read exactly what your consumer’s will read when they do 30 minutes of study online before committing to a 20 year contract. Maybe you’ll now comprehend why you get many cancellations and why if you do not close the deal on the very first appointment you’ve got nearly no possibility of closing it later on. Why not change your method do exactly what’s right for the customer and get on board with a company that supplies market leading value (price + quality + service).
The Solar Lease in San Diego CA 92101 or PPA Sales Pitch generally includes 6 main points. We discussed each below.
1. Go Solar and Pay Nothing! Or no money out of pocket.
Signing a 20 year contract in which you assure to pay X hundred dollars per month is hardly paying absolutely nothing. If you add up all those monthly payments throughout the term of the agreement you’ll be paying 2 to 3 times what you would have paid acquiring the solar system even if you factor in the interest paid on the solar loan. Numerous absolutely no cash down solar loans are readily available. If you have the credit score to get approved for the lease you can utilize the bank’s money to fund your solar system with zero cash down.
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2. No worries. The leasing/PPA company in San Diego CA 92101 is liable for all maintenance and repairs on the system.
The renting company will not clean your solar panels which has to do with only upkeep required on a solar system. Solar systems are incredibly low upkeep with no moving parts and feature incredibly long maker’s warranties and efficiency assurances. 25 years with a microinverter based system, that’s longer than the leasing companies’ guarantee. Most tier 1 solar devices makers are larger and more solvent than the solar leasing company by many multiples. Those long guarantees 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 company insures the system.
Purchase a system and the solar system is covered under your house owner’s policy for a simply 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 monitoring for the life of the system, using the same monitoring equipment utilized by the renting business.
5. Just sign an agreement and the renting business does everything else.
When purchasing a system you likewise simply sign an agreement and the solar contractors does everything else. Difference is the leasing business agreement is 17 pages (small print) and the solar professional’s contract is 2 pages.
6. A lease doesn’t hit your individual 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 cost. If this is among your primary issues there are funding options for a purchase (PACE and HERO) that also do not hit your individual credit or influence your financial obligation to income ratio. And those programs permit virtually any house owner to go solar no matter their credit score.
Now for the six major disadvantages to a solar lease in San Diego CA 92101 or PPA.
1. A lease is a 20 year liability. It is not a possession or an investment in solar. The solar leasing companies are purchasing solar on your roof! You’re simply supplying them an ensured 20 year cash flow!
2. Now you have 2 energy bills not simply one! In essence the renting company becomes a second energy. So, sign a solar lease and now you have 2 energy business you need to pay each month.
3. A lot of leases or PPAs carry an annual expense escalator, normally 2.9 %. So while you may be saving cash today in a numerous years you won’t be.
4. You won’t have the ability to declare the 30 % federal tax credit and any applicable cash refunds. You likewise will not be able to assert any tax deductible interest on solar loan payments (HELOC or PACE).
5. You never ever get to complimentary power with a lease or PPA. On the other hand, if you buy a solar system once the solar loan is paid off you can get complimentary electrical energy 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 require the new owner to presume the lease and terms. If you check out any of the above you can most likely see why an enlightened consumer would not be interested in presuming the commitments of your lease. This is especially true if the lease is 7 or more years old and the annual expense escalator in the lease has now raised the cost of electrical energy to equal or more than the expense of electricity from the energy.