Before you sign your name to a solar panel lease on your house in San Diego CA 92114 you have to comprehend exactly what you are truly getting into. If you’re in the business of offering solar leases perhaps you should try Googling this, “benefits of solar lease” Read all the page one results and see what your customer’s are reading if they do even a small amount of research. You also may attempt Googling, “selling home with solar lease” and “solar lease vs. purchase”. Read exactly what your consumer’s will check out when they do 30 minutes of study online before dedicating to a 20 year contract. Possibly you’ll now understand why you get so many cancellations and why if you don’t seal the deal on the first appointment you’ve got practically no chance of closing it later on. Why not alter your approach do what’s right for the consumer and get on board with a business that provides market leading value (cost + quality + service).
The Solar Lease in San Diego CA 92114 or PPA Sales Pitch typically includes six bottom lines. We discussed each below.
1. Go Solar and Pay Nothing! Or no money out of pocket.
Signing a 20 year agreement in which you guarantee to pay X hundred dollars per month is barely paying absolutely nothing. If you accumulate 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 consider the interest paid on the solar loan. Lots of no money down solar loans are readily available. If you have the credit report to get the lease you can make use of the bank’s money to finance your solar system with no cash down.
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2. No worries. The leasing/PPA company in San Diego CA 92114 is responsible for all repair and maintenance on the system.
The renting business will not clean your solar panels which has to do with just maintenance used on a solar system. Solar systems are exceptionally low upkeep with no moving parts and include incredibly long manufacturer’s service warranties and performance assurances. 25 years with a microinverter based system, that’s longer than the leasing companies’ guarantee. A lot of tier 1 solar equipment makers are bigger and more financially stable than the solar leasing business by lots of multiples. Those long guarantees are supported by a 20 year bumper to bumper guarantee from Solar Symphony.
3. Insurance coverage– 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 simply a couple dollars per month.
4. Monitoring– the leasing 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, using the exact same tracking equipment made use of by the leasing business.
5. Simply sign a contract and the leasing business does everything else.
When acquiring a system you also just sign an agreement and the solar professionals does everything else. Difference 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. Doesn’t impact your debt to earnings ratio.
This might be the only real benefit of the lease but it comes at an awefully high price. If this is among your primary concerns there are funding choices for a purchase (PACE and HERO) that likewise don’t hit your personal credit or affect your financial obligation to earnings ratio. And those programs permit almost any homeowner to go solar no matter their credit rating.
Now for the six main disadvantages to a solar lease in San Diego CA 92114 or PPA.
1. A lease is a 20 year liability. It is not an asset or a financial investment in solar. The solar leasing companies are investing in solar on your roof! You’re simply supplying them a guaranteed 20 year cash flow!
2. Now you have two energy costs not simply one! In essence the renting company ends up being a 2nd utility. So, sign a solar lease and now you have two energy companies you have to pay monthly.
3. Many leases or PPAs lug a yearly cost escalator, usually 2.9 %. So while you may be conserving cash today in a numerous years you will not be.
4. You will not be able to declare the 30 % federal tax credit and any relevant cash rebates. You likewise will not have the ability to declare any tax deductible interest on solar loan payments (HELOC or PACE).
5. You never get to totally 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 electricity from the sun for 10– 15 years depending on the length of the solar loan.
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6. Selling your home with a solar lease or PPA can be troublesome. Solar leases require the new owner to presume the lease and terms. If you read any of the above you can most likely see why an educated customer would not have an interest in assuming the obligations of your lease. This is especially real if the lease is 7 or more years old and the yearly cost escalator in the lease has now raised the expense of electricity to equivalent or more than the expense of electricity from the utility.