Before you sign your name to a solar panel lease on your house in San Diego CA 92133 you have to understand what you are truly getting into. If you’re in the business of selling solar leases maybe you need to attempt 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 percentage of research. You likewise may attempt Googling, “selling home with solar lease” and “solar lease vs. purchase”. Read what your client’s will read when they do 30 minutes of study online prior to dedicating to a 20 year agreement. Maybe you’ll now comprehend why you get numerous cancellations and why if you don’t close the deal on the first consultation you’ve got virtually no opportunity of closing it later. Why not change your method do what’s right for the consumer and get on board with a business that provides industry leading value (rate + quality + service).
The Solar Lease in San Diego CA 92133 or PPA Sales Pitch usually consists of six main points. We discussed each below.
1. Go Solar and Pay Nothing! Or no money out of pocket.
Signing a 20 year agreement where you promise to pay X hundred dollars per month is hardly paying nothing. If you add up all those monthly payments throughout the term of the agreement you’ll be paying 2 to 3 times exactly what you would have paid purchasing the solar system even if you factor in the interest paid on the solar loan. Lots of no cash down solar loans are offered. If you have the credit history to get approved for the lease you can utilize the bank’s cash to fund your solar system with no cash down.
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2. No worries. The leasing/PPA business in San Diego CA 92133 is responsible for all repair and maintenance on the system.
The renting company will not clean your solar panels which is about just upkeep needed on a solar system. Solar systems are incredibly low upkeep without any moving parts and include very long manufacturer’s warranties and performance guarantees. 25 years with a microinverter based system, that’s longer than the leasing companies’ warranty. The majority of tier 1 solar devices makers are larger and more financially stable than the solar leasing company by lots of multiples. Those long warranties are backed up by a 20 year bumper to bumper service warranty from Solar Symphony.
3. Insurance– go solar with a lease and the renting company 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 renting business monitors your system for the life of the lease/PPA.
When you acquire a system you also get keeping track of for the life of the system, using the very same monitoring equipment made use of by the renting business.
5. Simply sign an agreement and the renting business does everything else.
When purchasing a system you likewise just sign an agreement and the solar professionals does everything else. Distinction is the leasing companies agreement is 17 pages (fine print) and the solar specialist’s agreement is 2 pages.
6. A lease doesn’t hit your personal credit. Does not affect your debt to income ratio.
This may be the only real advantage of the lease however it comes at an awefully high rate. If this is one of your major concerns there are funding choices for a purchase (PACE and HERO) that also do not hit your personal credit or influence your debt to earnings ratio. And those programs permit almost any house owner to go solar no matter their credit rating.
Now for the 6 major disadvantages to a solar lease in San Diego CA 92133 or PPA.
1. A lease is a 20 year liability. It is not a possession or a financial investment in solar. The solar leasing companies are buying solar on your roof! You’re simply offering them a guaranteed 20 year cash flow!
2. Now you have two utility expenses not just one! In essence the leasing business ends up being a 2nd energy. So, sign a solar lease and now you have 2 utility business you have to pay each month.
3. Most leases or PPAs carry an annual cost escalator, normally 2.9 %. So while you might be saving money today in a numerous years you won’t be.
4. You will not be able to assert the 30 % federal tax credit and any suitable cash rebates. You likewise won’t 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 take pleasure in free electrical energy from the sun for 10– 15 years depending on the length of the solar loan.
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6. Selling your house with a solar lease or PPA can be troublesome. Solar leases need 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 want assuming the responsibilities of your lease. This is particularly real if the lease is 7 or more years old and the annual cost escalator in the lease has actually now raised the expense of electrical power to equal or more than the expense of electricity from the energy.