Before you sign your name to a solar panel lease on your home in San Diego CA 92115 you need to understand what you are actually getting into. If you’re in the business of offering solar leases possibly you ought to try Googling this, “benefits of solar lease” Read all the page one results and see exactly what your customer’s are reading if they do even a small amount of homework. You likewise may try Googling, “selling home with solar lease” and “solar lease vs. buy”. Read what your consumer’s will certainly check out when they do 30 minutes of study online prior to dedicating to a 20 year contract. Maybe you’ll now understand why you get a lot of cancellations and why if you don’t seal the deal on the first visit you’ve got virtually no opportunity of closing it later on. Why not alter your method do exactly what’s right for the customer and get on board with a company that offers industry leading value (cost + quality + service).
The Solar Lease in San Diego CA 92115 or PPA Sales Pitch usually includes six bottom lines. We went over each below.
1. Go Solar and Pay Nothing! Or no money out of pocket.
Signing a 20 year agreement in which you assure to pay X hundred dollars per month is hardly paying nothing. If you build up all those regular monthly payments during the term of the agreement you’ll be paying 2 to 3 times exactly what you would have paid purchasing the solar system even if you factor in the interest paid on the solar loan. Lots of zero cash down solar loans are offered. If you have the credit history to get the lease you can use the bank’s cash to finance your solar system with no money down.
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2. No worries. The leasing/PPA company in San Diego CA 92115 is accountable for all repair and maintenance on the system.
The leasing company will not clean your solar panels which has to do with just upkeep required on a solar system. Solar systems are extremely low maintenance with no moving parts and come with incredibly long maker’s service warranties and efficiency guarantees. 25 years with a microinverter based system, that’s longer than the leasing business’ warranty. The majority of tier 1 solar equipment producers are larger and more solvent than the solar leasing company by numerous 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 house 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 acquire a system you also get monitoring for the life of the system, making use of the exact same monitoring devices made use of by the renting company.
5. Simply sign an agreement and the renting company does everything else.
When acquiring a system you also simply sign an agreement and the solar professionals does everything else. Difference is the leasing companies contract is 17 pages (fine print) and the solar specialist’s agreement is 2 pages.
6. A lease does not strike your personal credit. Doesn’t impact your financial obligation to income ratio.
This might be the only real advantage of the lease however it comes at an awefully high cost. If this is among your major concerns there are funding options for a purchase (PACE and HERO) that likewise don’t hit your personal credit or influence your debt to earnings ratio. And those programs enable virtually any homeowner to go solar despite their credit score.
Now for the 6 major drawbacks to a solar lease in San Diego CA 92115 or PPA.
1. A lease is a 20 year liability. It is not an asset or an investment in solar. The solar leasing business are purchasing solar on your roof! You’re simply providing them a guaranteed 20 year capital!
2. Now you have 2 energy costs not simply one! In essence the renting company ends up being a second energy. So, sign a solar lease and now you have 2 utility business you need to pay each month.
3. A lot of leases or PPAs lug a yearly expense escalator, usually 2.9 %. So while you might be saving cash 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 refunds. You likewise won’t have the ability to declare any tax deductible interest on solar loan payments (HELOC or PACE).
5. You never get to complimentary power with a lease or PPA. On the other hand, if you buy a solar system once the solar loan is paid off you can take pleasure in complimentary electricity from the sun for 10– 15 years depending upon 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 need the new owner to presume the lease and terms. If you check out any of the above you can most likely see why an informed customer would not be interested in assuming the commitments of your lease. This is especially true if the lease is 7 or more years of ages and the yearly expense escalator in the lease has now raised the cost of electricity to equivalent or more than the expense of electrical energy from the utility.