Before you sign your name to a solar panel lease on your home in San Diego CA 92119 you have to comprehend 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 customer’s are reading if they do even a percentage of research. You likewise might attempt Googling, “selling home with solar lease” and “solar lease vs. purchase”. Read exactly what your consumer’s will certainly read when they do 30 minutes of study online prior to dedicating to a 20 year contract. Maybe you’ll now comprehend why you get a lot of cancellations and why if you do not seal the deal on the very first appointment you’ve got virtually no possibility of closing it later on. Why not change your technique do 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 92119 or PPA Sales Pitch usually includes 6 bottom lines. We went over each below.
1. Go Solar and Pay Nothing! Or no cash out of pocket.
Signing a 20 year contract in which you promise to pay X hundred dollars per month is barely paying nothing. If you accumulate all those regular monthly payments throughout the term of the agreement you’ll be paying 2 to 3 times what you would have paid buying the solar system even if you factor in the interest paid on the solar loan. Many no cash down solar loans are available. If you have the credit report to qualify for the lease you can make use of the bank’s cash to fund your solar system with absolutely no cash down.
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2. No fears. The leasing/PPA company in San Diego CA 92119 is accountable for all maintenance and repairs on the system.
The renting business will not clean your photovoltaic panels which is about just upkeep used on a solar system. Solar systems are extremely low maintenance without any moving parts and come with exceptionally long maker’s service warranties and efficiency warranties. 25 years with a microinverter based system, that’s longer than the leasing business’ assurance. Most tier 1 solar equipment makers are bigger and more financially stable than the solar leasing company by lots of multiples. Those long warranties are supported by a 20 year bumper to bumper guarantee from Solar Symphony.
3. Insurance coverage– go solar with a lease and the renting 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. Tracking– the renting company monitors your system for the life of the lease/PPA.
When you acquire a system you likewise get keeping an eye on for the life of the system, using the same tracking equipment utilized by the renting business.
5. Simply sign a contract and the renting company does everything else.
When acquiring a system you also simply sign a contract and the solar professionals does everything else. Distinction is the leasing business contract is 17 pages (small 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 might be the only true benefit of the lease however it comes at an awefully high price. If this is one of your primary issues there are funding options for a purchase (PACE and HERO) that likewise don’t hit your personal credit or impact your financial obligation to income ratio. And those programs allow practically any homeowner to go solar regardless of their credit score.
Now for the six main drawbacks to a solar lease in San Diego CA 92119 or PPA.
1. A lease is a 20 year liability. It is not a possession or an investment in solar. The solar leasing companies are buying solar on your roof! You’re just providing them a guaranteed 20 year cash flow!
2. Now you have two utility costs not just one! In essence the leasing business becomes a 2nd utility. So, sign a solar lease and now you have two utility business you have to pay monthly.
3. Many leases or PPAs lug a yearly cost escalator, normally 2.9 %. So while you may be conserving money today in a several years you will not be.
4. You won’t have the ability to assert the 30 % federal tax credit and any suitable 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 free power with a lease or PPA. On the other hand, if you purchase a solar system once the solar loan is settled you can get free electricity from the sun for 10– 15 years depending upon the length of the solar loan.
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6. Offering your home with a solar lease or PPA can be troublesome. Solar leases need the brand-new owner to presume the lease and terms. If you read any of the above you can most likely see why an enlightened customer would not have an interest in presuming the obligations of your lease. This is particularly true 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 equal or more than the cost of electrical energy from the utility.