Before you sign your name to a solar panel lease on your house in San Diego CA 92108 you have to comprehend what you are really getting into. If you’re in business of offering solar leases perhaps you ought to try Googling this, “benefits of solar lease” Read all of the page one results and see what your client’s are reading if they do even a percentage of homework. You also might try Googling, “selling home with solar lease” and “solar lease vs. purchase”. Read exactly what your consumer’s will certainly check out when they do 30 minutes of research online prior to committing to a 20 year agreement. Possibly you’ll now comprehend why you get many cancellations and why if you don’t close the deal on the very first consultation you’ve got virtually no chance of closing it later. Why not alter your strategy do exactly what’s right for the client and get on board with a business that offers market leading value (price + quality + service).
The Solar Lease in San Diego CA 92108 or PPA Sales Pitch typically includes 6 main points. We went over each below.
1. Go Solar and Pay Nothing! Or no money out of pocket.
Signing a 20 year contract where you guarantee to pay X hundred dollars per month is hardly paying nothing. If you accumulate all of those monthly payments during the term of the agreement 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. Lots of zero cash down solar loans are offered. If you have the credit history to get approved for the lease you can use the bank’s cash to finance your solar system with no cash down.
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2. No fears. The leasing/PPA business in San Diego CA 92108 is liable for all repair and maintenance on the system.
The renting company will not clean your photovoltaic panels which is about just upkeep used on a solar system. Solar systems are exceptionally low maintenance without any moving parts and come with exceptionally long maker’s service warranties and performance guarantees. 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 financially stable than the solar leasing company by numerous multiples. Those long guarantees are backed up by a 20 year bumper to bumper service warranty from Solar Symphony.
3. Insurance coverage– go solar with a lease and the leasing business 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. Tracking– the renting business monitors your system for the life of the lease/PPA.
When you buy a system you also get monitoring for the life of the system, making use of the very same tracking equipment utilized by the leasing company.
5. Simply sign an agreement and the leasing company does everything else.
When acquiring a system you also just sign an agreement and the solar service providers does everything else. Difference is the leasing companies contract is 17 pages (small print) and the solar contractor’s contract is 2 pages.
6. A lease does not strike your personal credit. Does not affect your financial obligation to earnings ratio.
This may be the only true benefit of the lease however it comes at an awefully high price. If this is among your major concerns there are funding alternatives for a purchase (PACE and HERO) that likewise don’t strike your individual credit or influence your debt to income ratio. And those programs enable virtually any house owner to go solar regardless of their credit rating.
Now for the 6 major downsides to a solar lease in San Diego CA 92108 or PPA.
1. A lease is a 20 year liability. It is not a possession or an investment in solar. The solar leasing business are buying solar on your roofing system! You’re just supplying them an ensured 20 year cash flow!
2. Now you have two energy costs not simply one! In essence the leasing company becomes a second utility. So, sign a solar lease and now you have two energy business you need to pay each month.
3. The majority of leases or PPAs bring a yearly cost escalator, usually 2.9 %. So while you may be conserving money today in a numerous years you will not be.
4. You will not have the ability to claim the 30 % federal tax credit and any applicable money discounts. You also won’t have the ability to assert 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 purchase a solar system once the solar loan is paid off you can take pleasure in 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 house with a solar lease or PPA can be troublesome. Solar leases use the new owner to assume the lease and terms. If you read any of the above you can probably see why an informed customer would not have an interest in presuming the responsibilities of your lease. This is specifically true if the lease is 7 or more years of ages and the annual expense escalator in the lease has actually now raised the expense of electrical energy to equal or more than the expense of electrical power from the utility.