Before you sign your name to a solar panel lease on your house in San Diego CA 92121 you have to understand what you are really getting into. If you’re in business of selling solar leases perhaps you must attempt Googling this, “benefits of solar lease” Read all the page one results and see what your consumer’s are reading if they do even a percentage of homework. You also might try Googling, “selling home with solar lease” and “solar lease vs. purchase”. Read what your customer’s will check out when they do 30 minutes of study online prior to dedicating to a 20 year agreement. Maybe you’ll now understand why you get numerous cancellations and why if you don’t close the deal on the first visit you’ve got nearly no possibility of closing it later. Why not change your strategy do exactly what’s right for the customer and get on board with a company that provides industry leading value (rate + quality + service).
The Solar Lease in San Diego CA 92121 or PPA Sales Pitch usually consists of six bottom lines. We talked about each below.
1. Go Solar and Pay Nothing! Or no money out of pocket.
Signing a 20 year contract where you guarantee to pay X hundred dollars per month is hardly paying absolutely nothing. If you add up all of those month-to-month payments throughout 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. Numerous absolutely no cash down solar loans are offered. If you have the credit report to qualify for the lease you can make use of the bank’s money to fund your solar system with zero cash down.
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2. No concerns. The leasing/PPA company in San Diego CA 92121 is responsible for all maintenance and repairs on the system.
The leasing business will not clean your photovoltaic panels which has to do with only maintenance needed on a solar system. Solar systems are extremely low maintenance without any moving parts and feature incredibly long manufacturer’s service warranties and efficiency assurances. 25 years with a microinverter based system, that’s longer than the leasing companies’ guarantee. Most tier 1 solar equipment manufacturers are larger and more solvent than the solar leasing business by many multiples. Those long service warranties are supported by a 20 year bumper to bumper warranty from Solar Symphony.
3. Insurance coverage– go solar with a lease and the renting business 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 leasing company monitors your system for the life of the lease/PPA.
When you purchase a system you likewise get keeping an eye on for the life of the system, making use of the very same tracking devices made use of by the renting company.
5. Just sign a contract and the renting company does everything else.
When buying a system you likewise just sign a contract and the solar contractors does everything else. Distinction is the leasing companies contract is 17 pages (fine print) and the solar contractor’s contract is 2 pages.
6. A lease does not strike your individual credit. Doesn’t affect your financial obligation to earnings ratio.
This may be the only true benefit of the lease but it comes at an awefully high cost. If this is among your main concerns there are funding options for a purchase (PACE and HERO) that likewise don’t strike your individual credit or impact your debt to income ratio. And those programs enable almost any property owner to go solar no matter their credit rating.
Now for the 6 major disadvantages to a solar lease in San Diego CA 92121 or PPA.
1. A lease is a 20 year liability. It is not an asset or an investment in solar. The solar leasing companies are purchasing solar on your roofing system! You’re simply providing them a guaranteed 20 year capital!
2. Now you have 2 energy bills not simply one! In essence the renting company becomes a second utility. So, sign a solar lease and now you have two utility business you need to pay each month.
3. The majority of leases or PPAs bring a yearly expense escalator, typically 2.9 %. So while you might be saving cash 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 relevant money rebates. You also won’t have the ability to declare any tax deductible interest on solar loan payments (HELOC or PACE).
5. You never get to totally 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 enjoy free electricity 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 use the brand-new owner to assume the lease and terms. If you read any of the above you can most likely see why an enlightened consumer would not be interested in assuming the commitments of your lease. This is particularly true if the lease is 7 or more years old and the yearly expense escalator in the lease has now raised the expense of electrical power to equal or more than the cost of electricity from the energy.