Before you sign your name to a solar panel lease on your home in San Diego CA 92134 you need to comprehend exactly what you are really getting into. If you’re in the business of selling solar leases perhaps you should attempt Googling this, “benefits of solar lease” Read all of the page one results and see what your client’s are reading if they do even a small amount of homework. You likewise may try Googling, “selling home with solar lease” and “solar lease vs. purchase”. Read exactly what your customer’s will certainly check out when they do 30 minutes of study online before dedicating to a 20 year agreement. Possibly you’ll now comprehend why you get a lot of cancellations and why if you don’t seal the deal on the very first appointment you’ve got virtually no opportunity of closing it later. Why not alter your technique do exactly what’s right for the consumer and get on board with a company that provides industry leading value (cost + quality + service).
The Solar Lease in San Diego CA 92134 or PPA Sales Pitch usually consists of 6 main points. We talked about each below.
1. Go Solar and Pay Nothing! Or no money out of pocket.
Signing a 20 year agreement where you guarantee to pay X hundred dollars per month is barely paying absolutely nothing. If you add 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 factor in the interest paid on the solar loan. Lots of zero cash down solar loans are available. If you have the credit report to get approved for the lease you can make use of the bank’s money to finance your solar system with no money down.
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2. No worries. The leasing/PPA company in San Diego CA 92134 is accountable for all repair and maintenance on the system.
The leasing company will certainly not clean your solar panels which has to do with just upkeep needed on a solar system. Solar systems are extremely low maintenance without any moving parts and have very long manufacturer’s service warranties and efficiency warranties. 25 years with a microinverter based system, that’s longer than the leasing business’ assurance. Most tier 1 solar equipment makers are bigger and more financially stable than the solar leasing business by lots of multiples. Those long guarantees are backed up by a 20 year bumper to bumper warranty from Solar Symphony.
3. Insurance coverage– go solar with a lease and the renting company guarantees the system.
Purchase a system and the solar system is covered under your homeowner’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 monitoring for the life of the system, utilizing the exact same tracking devices used by the renting business.
5. Just sign a contract and the leasing company does everything else.
When acquiring a system you also simply sign a contract and the solar service providers does everything else. Distinction is the leasing business agreement is 17 pages (small print) and the solar contractor’s agreement is 2 pages.
6. A lease doesn’t hit your individual credit. Doesn’t impact your financial obligation to income ratio.
This may be the only true benefit of the lease however it comes at an awefully high price. If this is among your major issues there are funding alternatives for a purchase (PACE and HERO) that likewise don’t hit your individual credit or affect your financial obligation to earnings ratio. And those programs enable almost any house owner to go solar regardless of their credit score.
Now for the 6 main drawbacks to a solar lease in San Diego CA 92134 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 a guaranteed 20 year cash flow!
2. Now you have 2 utility expenses not just one! In essence the renting company becomes a 2nd energy. So, sign a solar lease and now you have 2 energy companies you have to pay each month.
3. Many leases or PPAs bring a yearly cost escalator, generally 2.9 %. So while you may be conserving cash today in a several years you won’t be.
4. You won’t be able to claim the 30 % federal tax credit and any applicable cash discounts. You likewise will not have the ability to declare 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 purchase a solar system once the solar loan is paid off you can enjoy totally free electricity from the sun for 10– 15 years depending on the length of the solar loan.
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6. Selling your home 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 probably see why an informed consumer would not want assuming the commitments of your lease. This is particularly true if the lease is 7 or more years of ages and the yearly expense escalator in the lease has actually now raised the expense of electricity to equivalent or more than the expense of electricity from the utility.