Before you sign your name to a solar panel lease on your house in San Diego CA 92116 you need to understand what you are really getting into. If you’re in business of selling solar leases perhaps you ought to attempt 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 small amount of homework. You likewise might attempt Googling, “selling home with solar lease” and “solar lease vs. buy”. Read exactly what your customer’s will certainly check out when they do 30 minutes of study online before dedicating to a 20 year agreement. Perhaps you’ll now comprehend why you get a lot of cancellations and why if you don’t close the deal on the first visit you’ve got almost no opportunity 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 offers market leading value (price + quality + service).
The Solar Lease in San Diego CA 92116 or PPA Sales Pitch normally includes 6 main points. We talked about each below.
1. Go Solar and Pay Nothing! Or no money out of pocket.
Signing a 20 year contract where you assure to pay X hundred dollars per month is barely paying nothing. If you accumulate all of those regular monthly payments during the term of the agreement you’ll be paying 2 to 3 times exactly what you would have paid acquiring the solar system even if you consider the interest paid on the solar loan. Many zero cash down solar loans are readily available. If you have the credit report to get approved for the lease you can make use of the bank’s money to finance your solar system with zero cash down.
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2. No worries. The leasing/PPA business in San Diego CA 92116 is liable for all maintenance and repairs on the system.
The leasing business will certainly not clean your solar panels which has to do with just upkeep required on a solar system. Solar systems are incredibly low maintenance with no moving parts and include exceptionally long maker’s service warranties and performance warranties. 25 years with a microinverter based system, that’s longer than the leasing companies’ warranty. Many tier 1 solar equipment manufacturers are bigger and more financially stable 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 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. Tracking– the leasing company monitors your system for the life of the lease/PPA.
When you buy a system you likewise get monitoring for the life of the system, making use of the very same tracking equipment utilized by the renting business.
5. Simply sign a contract and the renting business does everything else.
When buying a system you also just sign a contract and the solar specialists does everything else. Distinction is the leasing companies contract is 17 pages (fine print) and the solar contractor’s agreement is 2 pages.
6. A lease doesn’t strike your personal credit. Does not affect your financial obligation to income ratio.
This might be the only true advantage of the lease however it comes at an awefully high cost. If this is among your main issues there are financing choices for a purchase (PACE and HERO) that also don’t hit your individual credit or affect your financial obligation to earnings ratio. And those programs enable nearly any property owner to go solar no matter their credit rating.
Now for the six major drawbacks to a solar lease in San Diego CA 92116 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 purchasing solar on your roof! You’re just supplying them an ensured 20 year capital!
2. Now you have two utility costs not simply one! In essence the renting business 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 carry an annual cost escalator, typically 2.9 %. So while you may be saving money today in a several years you will not be.
4. You won’t have the ability to declare the 30 % federal tax credit and any appropriate money rebates. You also won’t be able to assert 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 acquire a solar system once the solar loan is settled you can take pleasure in complimentary electrical energy from the sun for 10– 15 years depending upon the length of the solar loan.
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6. Offering your house with a solar lease or PPA can be bothersome. Solar leases require the new owner to assume the lease and terms. If you check out any of the above you can probably see why an informed customer would not be interested in presuming the commitments of your lease. This is particularly true if the lease is 7 or more years of ages and the yearly expense escalator in the lease has actually now raised the cost of electrical energy to equal or more than the cost of electrical power from the energy.