Before you sign your name to a solar panel lease on your home in San Diego CA 92120 you have to understand exactly what you are truly getting into. If you’re in business of offering solar leases maybe you need to attempt Googling this, “benefits of solar lease” Read all of the page one results and see exactly what your customer’s are checking out if they do even a small amount of homework. You also may attempt Googling, “selling home with solar lease” and “solar lease vs. purchase”. Read exactly what your client’s will certainly read when they do 30 minutes of study online before dedicating to a 20 year agreement. Perhaps you’ll now understand why you get so many cancellations and why if you do not seal the deal on the very first visit you’ve got almost no possibility of closing it later. Why not alter your method do what’s right for the customer and get on board with a company that supplies market leading value (price + quality + service).
The Solar Lease in San Diego CA 92120 or PPA Sales Pitch normally consists of 6 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 assure to pay X hundred dollars per month is barely paying nothing. If you build up all those regular monthly payments throughout the regard to 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 zero cash down solar loans are available. If you have the credit score to qualify for the lease you can use the bank’s cash to finance your solar system with no money down.
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2. No fears. The leasing/PPA company in San Diego CA 92120 is liable for all maintenance and repairs on the system.
The leasing company will certainly not clean your photovoltaic panels which is about only maintenance required on a solar system. Solar systems are incredibly low maintenance with no moving parts and come with incredibly long maker’s warranties and performance guarantees. 25 years with a microinverter based system, that’s longer than the leasing business’ assurance. A lot of tier 1 solar equipment producers are bigger and more financially stable than the solar leasing business by lots of multiples. Those long warranties are backed up by a 20 year bumper to bumper guarantee from Solar Symphony.
3. Insurance– go solar with a lease and the leasing company 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 renting company monitors your system for the life of the lease/PPA.
When you acquire a system you likewise get monitoring for the life of the system, using the very same tracking devices utilized by the leasing business.
5. Simply sign an agreement and the renting company does everything else.
When buying a system you likewise just sign a contract and the solar specialists does everything else. Difference is the leasing companies agreement is 17 pages (small print) and the solar service provider’s contract is 2 pages.
6. A lease does not hit your individual credit. Doesn’t influence your financial obligation to income ratio.
This may be the only true benefit of the lease however it comes at an awefully high rate. If this is one of your primary concerns there are financing options for a purchase (PACE and HERO) that likewise don’t hit your personal credit or affect your debt to earnings ratio. And those programs enable practically any house owner to go solar no matter their credit rating.
Now for the six major drawbacks to a solar lease in San Diego CA 92120 or PPA.
1. A lease is a 20 year liability. It is not a possession or an investment in solar. The solar leasing business are investing in solar on your roof! You’re just providing them a guaranteed 20 year capital!
2. Now you have 2 energy expenses not simply one! In essence the leasing business ends up being a second utility. So, sign a solar lease and now you have two utility business you have to pay monthly.
3. The majority of leases or PPAs carry an annual cost escalator, usually 2.9 %. So while you might be conserving money today in a numerous years you won’t be.
4. You won’t be able to assert the 30 % federal tax credit and any applicable cash rebates. You likewise will not have the ability to assert any tax deductible interest on solar loan payments (HELOC or PACE).
5. You never get to free power with a lease or PPA. On the other hand, if you acquire a solar system once the solar loan is paid off you can delight in totally free electrical energy 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 read any of the above you can most likely see why an informed consumer would not have an interest in presuming the responsibilities 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 cost of electrical energy to equivalent or more than the expense of electrical energy from the energy.