Before you sign your name to a solar panel lease on your house in San Diego CA 92112 you have to understand exactly what you are truly getting into. If you’re in business of selling solar leases maybe you need to try 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 homework. You also may try Googling, “selling home with solar lease” and “solar lease vs. buy”. Read what your consumer’s will 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 very first visit you’ve got virtually no chance of closing it later. Why not change your strategy do exactly what’s right for the client and get on board with a business that supplies industry leading value (rate + quality + service).
The Solar Lease in San Diego CA 92112 or PPA Sales Pitch typically consists of 6 main points. We discussed each below.
1. Go Solar and Pay Nothing! Or no money out of pocket.
Signing a 20 year agreement where you assure to pay X hundred dollars per month is hardly paying absolutely nothing. If you build up all of those month-to-month payments during 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 factor in the interest paid on the solar loan. Lots of no money down solar loans are readily available. If you have the credit history to get the lease you can use the bank’s money to finance your solar system with absolutely no cash down.
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2. No worries. The leasing/PPA business in San Diego CA 92112 is accountable for all maintenance and repairs 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 extremely low upkeep without any moving parts and have incredibly long manufacturer’s warranties and performance guarantees. 25 years with a microinverter based system, that’s longer than the leasing companies’ warranty. Many tier 1 solar devices manufacturers are bigger and more financially stable than the solar leasing company by lots of multiples. Those long service warranties are supported by a 20 year bumper to bumper guarantee from Solar Symphony.
3. Insurance– go solar with a lease and the leasing company 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. Monitoring– the leasing business monitors your system for the life of the lease/PPA.
When you purchase a system you likewise get monitoring for the life of the system, using the very same tracking equipment made use of by the leasing company.
5. Just sign an agreement and the renting company does everything else.
When purchasing a system you also just sign an agreement and the solar specialists does everything else. Distinction is the leasing companies agreement is 17 pages (fine print) and the solar contractor’s agreement is 2 pages.
6. A lease does not hit your personal credit. Does not impact your financial obligation to income ratio.
This may be the only true advantage of the lease but it comes at an awefully high price. If this is one of your main issues there are funding alternatives 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 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 92112 or PPA.
1. A lease is a 20 year liability. It is not an asset or a financial investment in solar. The solar leasing business are buying solar on your roofing! You’re simply offering them a guaranteed 20 year capital!
2. Now you have 2 utility costs 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 bring a yearly cost escalator, normally 2.9 %. So while you may be saving cash 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 cash rebates. You likewise won’t 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 purchase a solar system once the solar loan is paid off you can take pleasure in complimentary electrical energy 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 require the brand-new owner to presume the lease and terms. If you check out any of the above you can most likely see why an informed 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 cost escalator in the lease has now raised the expense of electricity to equal or more than the expense of electricity from the utility.