Before you sign your name to a solar panel lease on your house in San Diego CA 92103 you need to understand what you are actually getting into. If you’re in the business of selling solar leases maybe you must attempt Googling this, “benefits of solar lease” Read all of the page one results and see exactly what your customer’s are checking out if they do even a small amount of homework. You also may attempt Googling, “selling home with solar lease” and “solar lease vs. buy”. Read what your consumer’s will certainly read when they do 30 minutes of study 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 first visit you’ve got nearly no chance of closing it later. Why not change your method 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 San Diego CA 92103 or PPA Sales Pitch typically consists of six bottom lines. We went over each below.
1. Go Solar and Pay Nothing! Or no money out of pocket.
Signing a 20 year contract in which you promise to pay X hundred dollars per month is barely paying nothing. If you add up all those regular monthly payments during the term of the contract you’ll be paying 2 to 3 times what you would have paid purchasing the solar system even if you consider the interest paid on the solar loan. Numerous no money down solar loans are readily available. If you have the credit score to qualify for the lease you can make use of the bank’s cash to fund your solar system with no money down.
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2. No fears. The leasing/PPA company in San Diego CA 92103 is responsible for all maintenance and repairs on the system.
The renting business will certainly not clean your photovoltaic panels which has to do with only maintenance required on a solar system. Solar systems are very low upkeep with no moving parts and come with extremely long manufacturer’s service warranties and performance assurances. 25 years with a microinverter based system, that’s longer than the leasing companies’ assurance. The majority of tier 1 solar devices manufacturers are bigger and more solvent than the solar leasing business by many multiples. Those long guarantees are supported by a 20 year bumper to bumper warranty from Solar Symphony.
3. Insurance– go solar with a lease and the leasing company guarantees the system.
Purchase a system and the solar system is covered under your property owner’s policy for a just a couple dollars per month.
4. Monitoring– the leasing company monitors your system for the life of the lease/PPA.
When you acquire a system you likewise get keeping an eye on for the life of the system, making use of the exact same monitoring equipment utilized by the renting business.
5. Just sign a contract and the renting business does everything else.
When buying a system you also simply sign an agreement and the solar professionals does everything else. Distinction is the leasing business agreement is 17 pages (fine print) and the solar contractor’s contract is 2 pages.
6. A lease doesn’t hit your individual credit. Doesn’t impact your financial obligation to earnings ratio.
This may be the only real advantage of the lease however it comes at an awefully high price. If this is one of your main issues there are funding options for a purchase (PACE and HERO) that also do not hit your individual credit or influence your debt to earnings ratio. And those programs allow nearly any homeowner to go solar no matter their credit score.
Now for the 6 major disadvantages to a solar lease in San Diego CA 92103 or PPA.
1. A lease is a 20 year liability. It is not a possession or a financial investment in solar. The solar leasing companies are buying solar on your roofing system! You’re just providing them a guaranteed 20 year cash flow!
2. Now you have 2 utility expenses not just one! In essence the renting business becomes a second utility. So, sign a solar lease and now you have two energy companies you have to pay each month.
3. The majority of leases or PPAs carry a yearly cost escalator, usually 2.9 %. So while you may be conserving money today in a several years you will not be.
4. You will not be able to claim the 30 % federal tax credit and any suitable cash discounts. You likewise won’t be able to declare any tax deductible interest on solar loan payments (HELOC or PACE).
5. You never ever get to free power with a lease or PPA. In contrast, if you buy 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 upon the length of the solar loan.
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6. Selling your home with a solar lease or PPA can be bothersome. Solar leases need the new owner to assume the lease and terms. If you check out any of the above you can probably see why an informed consumer would not be interested in assuming the obligations of your lease. This is specifically real if the lease is 7 or more years of ages and the annual expense escalator in the lease has now raised the expense of electricity to equal or more than the cost of electrical power from the utility.