Prior to you sign your name to a solar panel lease on your house in San Diego CA 92124 you have to comprehend exactly what you are truly getting into. If you’re in the business of offering solar leases possibly you should try Googling this, “benefits of solar lease” Read all the page one results and see what your consumer’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 what your customer’s will check out when they do 30 minutes of research online before committing to a 20 year contract. Perhaps you’ll now comprehend why you get numerous cancellations and why if you don’t seal the deal on the first consultation you’ve got nearly no chance of closing it later. Why not change your technique do exactly what’s right for the consumer and get on board with a company that provides market leading value (cost + quality + service).
The Solar Lease in San Diego CA 92124 or PPA Sales Pitch usually includes 6 main points. We went over each below.
1. Go Solar and Pay Nothing! Or no money out of pocket.
Signing a 20 year agreement in which you promise to pay X hundred dollars per month is barely paying absolutely nothing. If you build up all those month-to-month payments during the regard to the agreement you’ll be paying 2 to 3 times what you would have paid purchasing the solar system even if you factor in the interest paid on the solar loan. Many zero cash down solar loans are readily available. If you have the credit history to get approved for the lease you can utilize the bank’s money to finance your solar system with zero cash down.
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2. No concerns. The leasing/PPA company in San Diego CA 92124 is responsible for all repair and maintenance on the system.
The leasing company will not clean your photovoltaic panels which has to do with only maintenance needed on a solar system. Solar systems are very low upkeep with no moving parts and have exceptionally long manufacturer’s warranties and efficiency guarantees. 25 years with a microinverter based system, that’s longer than the leasing business’ guarantee. A lot of tier 1 solar devices makers are bigger and more financially stable than the solar leasing company by many multiples. Those long guarantees are backed up by a 20 year bumper to bumper guarantee from Solar Symphony.
3. Insurance– go solar with a lease and the leasing 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. Monitoring– the leasing business monitors your system for the life of the lease/PPA.
When you buy a system you also get keeping an eye on for the life of the system, making use of the exact same tracking equipment used by the renting company.
5. Just sign an agreement and the renting company does everything else.
When purchasing a system you likewise just sign an agreement and the solar contractors does everything else. Distinction is the leasing business agreement is 17 pages (small print) and the solar contractor’s contract 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 primary issues there are funding options for a purchase (PACE and HERO) that likewise do not strike your personal credit or affect your debt to earnings ratio. And those programs permit virtually any house owner to go solar despite their credit rating.
Now for the six major downsides to a solar lease in San Diego CA 92124 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 buying solar on your roofing system! You’re just providing them an ensured 20 year cash flow!
2. Now you have 2 energy expenses not simply one! In essence the renting business ends up being a 2nd utility. So, sign a solar lease and now you have two utility companies you have to pay monthly.
3. A lot of leases or PPAs lug a yearly cost escalator, normally 2.9 %. So while you may be saving money today in a numerous years you won’t be.
4. You won’t have the ability to assert the 30 % federal tax credit and any suitable cash discounts. You likewise will not 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 purchase a solar system once the solar loan is settled you can get complimentary 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 bothersome. Solar leases need the new owner to assume the lease and terms. If you check out any of the above you can probably see why an enlightened customer would not want assuming the responsibilities of your lease. This is particularly real if the lease is 7 or more years old and the annual expense escalator in the lease has actually now raised the cost of electrical energy to equivalent or more than the expense of electrical energy from the utility.