Before you sign your name to a solar panel lease on your house in San Diego CA 92126 you need to comprehend exactly what you are really getting into. If you’re in the business of offering solar leases possibly you need to attempt Googling this, “benefits of solar lease” Read all the page one results and see exactly what your client’s are checking out if they do even a percentage of homework. You also may try Googling, “selling home with solar lease” and “solar lease vs. buy”. Read exactly what your consumer’s will certainly read when they do 30 minutes of study online before committing to a 20 year agreement. Perhaps you’ll now understand why you get so many cancellations and why if you do not close the deal on the first consultation you’ve got almost no chance of closing it later on. Why not change your method do exactly what’s right for the customer and get on board with a company that supplies market leading value (cost + quality + service).
The Solar Lease in San Diego CA 92126 or PPA Sales Pitch usually consists of six bottom lines. We went over each below.
1. Go Solar and Pay Nothing! Or no cash out of pocket.
Signing a 20 year contract where you promise to pay X hundred dollars per month is barely paying absolutely nothing. If you build up all of those month-to-month payments throughout 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 consider the interest paid on the solar loan. Numerous zero cash down solar loans are offered. If you have the credit history to qualify 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 worries. The leasing/PPA company in San Diego CA 92126 is responsible for all repair and maintenance on the system.
The renting business will certainly not clean your photovoltaic panels which has to do with only maintenance required on a solar system. Solar systems are very low upkeep with no moving parts and include incredibly long maker’s guarantees and efficiency guarantees. 25 years with a microinverter based system, that’s longer than the leasing business’ guarantee. Many tier 1 solar devices makers are larger and more solvent than the solar leasing business by numerous multiples. Those long warranties are backed up 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 house owner’s policy for a just 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 likewise get monitoring for the life of the system, making use of the same monitoring devices used by the leasing company.
5. Just sign an agreement and the leasing company does everything else.
When buying a system you likewise simply sign a contract and the solar contractors does everything else. Distinction is the leasing companies contract is 17 pages (fine print) and the solar service provider’s agreement is 2 pages.
6. A lease does not strike your individual credit. Doesn’t influence your financial obligation to earnings ratio.
This may be the only true benefit of the lease but it comes at an awefully high rate. If this is one of your primary concerns there are funding options for a purchase (PACE and HERO) that also do not strike your personal credit or impact your debt to income ratio. And those programs enable almost any property owner to go solar no matter their credit score.
Now for the 6 major disadvantages to a solar lease in San Diego CA 92126 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 investing in solar on your roof! You’re just providing them a guaranteed 20 year cash flow!
2. Now you have two utility expenses not just one! In essence the renting business ends up being a 2nd utility. So, sign a solar lease and now you have two energy companies you have to pay each month.
3. Many leases or PPAs bring an annual expense escalator, typically 2.9 %. So while you may be saving cash today in a numerous years you will not be.
4. You will not be able to declare the 30 % federal tax credit and any relevant cash refunds. You likewise will not be able to assert any tax deductible interest on solar loan payments (HELOC or PACE).
5. You never ever get to totally free power with a lease or PPA. In contrast, if you buy a solar system once the solar loan is paid off you can get 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 house with a solar lease or PPA can be troublesome. Solar leases require the brand-new owner to presume the lease and terms. If you read any of the above you can probably see why an informed consumer would not have an interest in assuming the responsibilities of your lease. This is especially real if the lease is 7 or more years old and the annual cost escalator in the lease has actually now raised the cost of electrical power to equivalent or more than the cost of electrical power from the energy.