Before you sign your name to a solar panel lease on your home in San Diego CA 92132 you have to understand exactly what you are really getting into. If you’re in business of offering solar leases perhaps you should try 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 research. You likewise may try Googling, “selling home with solar lease” and “solar lease vs. purchase”. Read what your customer’s will certainly check out when they do 30 minutes of study online prior to dedicating to a 20 year agreement. Perhaps you’ll now comprehend why you get a lot of cancellations and why if you do not close the deal on the first appointment you’ve got practically no opportunity of closing it later on. Why not alter your approach do exactly what’s right for the client and get on board with a business that supplies industry leading value (price + quality + service).
The Solar Lease in San Diego CA 92132 or PPA Sales Pitch usually includes six bottom lines. We talked about 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 hardly paying nothing. If you add up all those monthly payments during the term of the contract 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. Numerous no cash down solar loans are available. If you have the credit report to get the lease you can make use of the bank’s money to fund your solar system with no money down.
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2. No concerns. The leasing/PPA business in San Diego CA 92132 is responsible for all maintenance and repairs on the system.
The renting business will not clean your photovoltaic panels which has to do with just maintenance used on a solar system. Solar systems are exceptionally low maintenance without any moving parts and have exceptionally long producer’s guarantees and efficiency guarantees. 25 years with a microinverter based system, that’s longer than the leasing companies’ guarantee. Many tier 1 solar equipment makers are bigger and more solvent than the solar leasing business by numerous multiples. Those long guarantees are supported by a 20 year bumper to bumper warranty from Solar Symphony.
3. Insurance– go solar with a lease and the leasing business insures the system.
Purchase a system and the solar system is covered under your homeowner’s policy for a just a couple dollars per month.
4. Monitoring– the renting 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 exact same monitoring devices utilized by the leasing company.
5. Just sign an agreement and the renting business does everything else.
When purchasing a system you likewise just sign a contract and the solar professionals does everything else. Difference is the leasing companies agreement is 17 pages (fine print) and the solar service provider’s agreement is 2 pages.
6. A lease does not strike your personal credit. Doesn’t affect your financial obligation to earnings ratio.
This might be the only true benefit of the lease but it comes at an awefully high rate. If this is among your major issues there are financing choices for a purchase (PACE and HERO) that likewise don’t hit your personal credit or affect your financial obligation to earnings ratio. And those programs permit virtually any homeowner to go solar no matter their credit rating.
Now for the 6 main downsides to a solar lease in San Diego CA 92132 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 buying solar on your roofing! You’re just 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. A lot of leases or PPAs carry an annual cost escalator, typically 2.9 %. So while you may be saving cash today in a numerous years you won’t be.
4. You will not have the ability to declare the 30 % federal tax credit and any suitable money rebates. You also will not be able to assert any tax deductible interest on solar loan payments (HELOC or PACE).
5. You never ever get to complimentary power with a lease or PPA. In contrast, if you acquire a solar system once the solar loan is settled you can enjoy complimentary electrical power 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 problematic. Solar leases use the brand-new owner to presume the lease and terms. If you check out any of the above you can most likely see why an informed customer would not be interested in assuming the responsibilities of your lease. This is especially true if the lease is 7 or more years of ages and the annual expense escalator in the lease has actually now raised the expense of electrical energy to equivalent or more than the cost of electrical power from the utility.