Before you sign your name to a solar panel lease on your home in San Diego CA 92109 you have to comprehend exactly what you are really getting into. If you’re in business of selling solar leases possibly you need to attempt Googling this, “benefits of solar lease” Read all of the page one results and see what your customer’s are checking out if they do even a small amount of research. You also may try Googling, “selling home with solar lease” and “solar lease vs. purchase”. Read what your client’s will check out when they do 30 minutes of research online before dedicating to a 20 year contract. Maybe you’ll now comprehend why you get a lot of cancellations and why if you do not close the deal on the very first consultation you’ve got practically no opportunity of closing it later. Why not change your technique do what’s right for the customer and get on board with a company that offers industry leading value (rate + quality + service).
The Solar Lease in San Diego CA 92109 or PPA Sales Pitch typically includes six main points. We discussed 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 hardly paying nothing. If you build up all those regular monthly payments throughout the regard to the contract you’ll be paying 2 to 3 times what you would have paid buying the solar system even if you consider the interest paid on the solar loan. Lots of no money down solar loans are available. 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 absolutely no money down.
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2. No fears. The leasing/PPA business in San Diego CA 92109 is responsible for all repair and maintenance on the system.
The leasing business will certainly not clean your photovoltaic panels which is about just upkeep used on a solar system. Solar systems are incredibly low maintenance with no moving parts and include incredibly long manufacturer’s warranties and performance guarantees. 25 years with a microinverter based system, that’s longer than the leasing companies’ warranty. A lot of tier 1 solar equipment manufacturers are bigger and more financially stable than the solar leasing company by lots of 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 company guarantees the system.
Purchase a system and the solar system is covered under your property owner’s policy for a simply a couple dollars per month.
4. Tracking– the leasing 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 same tracking equipment made use of by the leasing business.
5. Simply sign an agreement and the leasing business does everything else.
When buying a system you likewise just sign a contract and the solar service providers does everything else. Distinction is the leasing companies contract is 17 pages (fine print) and the solar service provider’s agreement is 2 pages.
6. A lease doesn’t strike your personal credit. Doesn’t influence your financial obligation to income ratio.
This may be the only real advantage of the lease however it comes at an awefully high rate. If this is among your major issues there are funding options for a purchase (PACE and HERO) that also do not strike your personal credit or influence your debt to earnings ratio. And those programs permit almost any house owner to go solar no matter their credit rating.
Now for the six major downsides to a solar lease in San Diego CA 92109 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 purchasing solar on your roofing! You’re just offering them a guaranteed 20 year cash flow!
2. Now you have 2 utility expenses not simply one! In essence the renting business ends up being a second energy. So, sign a solar lease and now you have 2 energy business you have to pay each month.
3. Many leases or PPAs lug a yearly cost escalator, normally 2.9 %. So while you may be conserving money today in a several years you will not be.
4. You won’t have the ability to claim the 30 % federal tax credit and any appropriate money discounts. You also 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 enjoy totally free electricity from the sun for 10– 15 years depending upon 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 brand-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 have an interest in assuming the obligations of your lease. This is especially true if the lease is 7 or more years old and the annual cost escalator in the lease has actually now raised the expense of electricity to equivalent or more than the cost of electrical power from the energy.