Prior to you sign your name to a solar panel lease on your home in San Diego CA 92111 you have to understand exactly what you are truly getting into. If you’re in business of offering solar leases possibly you must try Googling this, “benefits of solar lease” Read all the page one results and see what your client’s are checking out if they do even a percentage of research. You also may try Googling, “selling home with solar lease” and “solar lease vs. purchase”. Read what your consumer’s will read when they do 30 minutes of study online before committing to a 20 year agreement. Perhaps you’ll now understand why you get a lot of cancellations and why if you don’t seal the deal on the very first visit you’ve got practically no chance of closing it later on. Why not alter your technique do exactly what’s right for the client and get on board with a company that offers industry leading value (rate + quality + service).
The Solar Lease in San Diego CA 92111 or PPA Sales Pitch usually consists of six main points. We discussed each below.
1. Go Solar and Pay Nothing! Or no cash 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 those monthly payments throughout the term of the contract you’ll be paying 2 to 3 times what you would have paid acquiring the solar system even if you consider the interest paid on the solar loan. Lots of no cash down solar loans are offered. If you have the credit score to get the lease you can use the bank’s money to finance your solar system with zero money down.
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2. No fears. The leasing/PPA company in San Diego CA 92111 is responsible for all maintenance and repairs on the system.
The renting company will not clean your photovoltaic panels which has to do with only maintenance used on a solar system. Solar systems are incredibly low upkeep without any moving parts and come with exceptionally long producer’s guarantees and efficiency assurances. 25 years with a microinverter based system, that’s longer than the leasing companies’ assurance. Most tier 1 solar devices makers are larger and more solvent than the solar leasing company by many multiples. Those long warranties are supported by a 20 year bumper to bumper guarantee from Solar Symphony.
3. Insurance– go solar with a lease and the renting business insures the system.
Purchase a system and the solar system is covered under your homeowner’s policy for a simply a couple dollars per month.
4. Tracking– the leasing company monitors your system for the life of the lease/PPA.
When you buy a system you also get keeping an eye on for the life of the system, making use of the exact same monitoring devices used by the leasing company.
5. Just sign an agreement and the leasing company does everything else.
When acquiring a system you also just sign a contract and the solar specialists does everything else. Distinction is the leasing companies agreement is 17 pages (fine print) and the solar specialist’s agreement is 2 pages.
6. A lease doesn’t hit your individual credit. Does not impact your debt to earnings ratio.
This might be the only true benefit of the lease however it comes at an awefully high rate. If this is one of your primary issues there are financing alternatives for a purchase (PACE and HERO) that also don’t hit your personal credit or influence your financial obligation to earnings ratio. And those programs enable almost any property owner to go solar regardless of their credit rating.
Now for the 6 primary downsides to a solar lease in San Diego CA 92111 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 buying solar on your roofing! You’re just providing them an ensured 20 year cash flow!
2. Now you have two utility bills not simply one! In essence the leasing company becomes a 2nd energy. So, sign a solar lease and now you have two utility companies you have to pay monthly.
3. Many leases or PPAs bring a yearly cost escalator, usually 2.9 %. So while you might be conserving cash today in a numerous years you won’t be.
4. You won’t have the ability to assert the 30 % federal tax credit and any applicable cash refunds. You also will not have the ability to declare any tax deductible interest on solar loan payments (HELOC or PACE).
5. You never ever get to totally free power with a lease or PPA. In contrast, if you acquire a solar system once the solar loan is paid off you can get free electrical power from the sun for 10– 15 years depending on the length of the solar loan.
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6. Offering your home with a solar lease or PPA can be bothersome. Solar leases need 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 want presuming the responsibilities of your lease. This is specifically 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 electricity to equivalent or more than the expense of electrical energy from the utility.