Before you sign your name to a solar panel lease on your house in San Diego CA 92117 you have to understand what you are actually getting into. If you’re in business of selling solar leases maybe you need to try Googling this, “benefits of solar lease” Read all of the page one results and see exactly what your consumer’s are reading if they do even a small amount of research. You also might try Googling, “selling home with solar lease” and “solar lease vs. buy”. Read exactly what your consumer’s will check out when they do 30 minutes of study online before committing to a 20 year agreement. Possibly you’ll now understand why you get a lot of cancellations and why if you do not close the deal on the first visit you’ve got almost no opportunity of closing it later on. Why not change your method 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 92117 or PPA Sales Pitch usually consists of six main points. We went over each below.
1. Go Solar and Pay Nothing! Or no money out of pocket.
Signing a 20 year contract in which you guarantee to pay X hundred dollars per month is barely paying nothing. If you add up all of those month-to-month payments during the term of the agreement you’ll be paying 2 to 3 times exactly what you would have paid buying the solar system even if you consider the interest paid on the solar loan. Lots of zero cash down solar loans are available. If you have the credit score to get approved for the lease you can utilize the bank’s cash to fund your solar system with no cash down.
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2. No concerns. The leasing/PPA company in San Diego CA 92117 is liable for all maintenance and repairs on the system.
The renting company will not clean your photovoltaic panels which has to do with just maintenance used on a solar system. Solar systems are extremely low upkeep without any moving parts and have very long producer’s warranties and performance assurances. 25 years with a microinverter based system, that’s longer than the leasing business’ guarantee. Many tier 1 solar devices producers 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 business guarantees 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 company monitors your system for the life of the lease/PPA.
When you purchase a system you also get monitoring for the life of the system, making use of the very same monitoring devices made use of by the renting company.
5. Simply sign an agreement and the leasing company does everything else.
When purchasing a system you likewise just sign an agreement and the solar professionals does everything else. Distinction is the leasing business agreement is 17 pages (fine print) and the solar professional’s agreement is 2 pages.
6. A lease does not strike your personal credit. Does not influence your debt to earnings ratio.
This might be the only true benefit of the lease but it comes at an awefully high cost. If this is one of your major concerns there are financing choices for a purchase (PACE and HERO) that also don’t hit your individual credit or impact your financial obligation to earnings ratio. And those programs allow practically any homeowner to go solar despite their credit score.
Now for the 6 main downsides to a solar lease in San Diego CA 92117 or PPA.
1. A lease is a 20 year liability. It is not a possession or a financial 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 two utility bills not just one! In essence the leasing business becomes a second utility. So, sign a solar lease and now you have two energy business you have to pay monthly.
3. Most leases or PPAs lug a yearly expense escalator, normally 2.9 %. So while you might be saving cash today in a several years you won’t be.
4. You won’t be able to assert the 30 % federal tax credit and any appropriate cash rebates. You likewise will not be able to assert 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 enjoy free electricity 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 new owner to assume the lease and terms. If you check out any of the above you can probably see why an educated customer would not want assuming the obligations of your lease. This is specifically 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 electrical energy to equivalent or more than the expense of electrical power from the energy.