Prior to you sign your name to a solar panel lease on your house in San Diego CA 92135 you need to comprehend exactly what you are truly getting into. If you’re in business of selling solar leases perhaps you ought to try Googling this, “benefits of solar lease” Read all of the page one results and see what your consumer’s are reading if they do even a percentage of research. You likewise may try Googling, “selling home with solar lease” and “solar lease vs. buy”. Read what your client’s will certainly check out when they do 30 minutes of research online before committing to a 20 year agreement. Possibly you’ll now understand why you get so many cancellations and why if you do not seal the deal on the very first consultation you’ve got almost no opportunity of closing it later on. Why not alter your strategy do what’s right for the customer and get on board with a company that provides industry leading value (price + quality + service).
The Solar Lease in San Diego CA 92135 or PPA Sales Pitch typically consists of six main points. We talked about each below.
1. Go Solar and Pay Nothing! Or no cash out of pocket.
Signing a 20 year agreement in which you guarantee to pay X hundred dollars per month is hardly paying absolutely nothing. If you accumulate all of those month-to-month payments throughout the term of the agreement you’ll be paying 2 to 3 times exactly what you would have paid acquiring the solar system even if you factor in the interest paid on the solar loan. Lots of no money down solar loans are offered. If you have the credit score to get the lease you can utilize the bank’s cash to fund your solar system with absolutely no cash down.
[ssvideo keyword=”Solar Companies” title=”Solar Companies in San Diego”]
2. No fears. The leasing/PPA business in San Diego CA 92135 is accountable for all maintenance and repairs on the system.
The renting business will not clean your photovoltaic panels which is about just upkeep used on a solar system. Solar systems are exceptionally low maintenance without any moving parts and include very long maker’s service warranties and efficiency warranties. 25 years with a microinverter based system, that’s longer than the leasing companies’ guarantee. Many tier 1 solar devices producers are larger and more financially stable than the solar leasing company by lots of multiples. Those long warranties are supported by a 20 year bumper to bumper warranty from Solar Symphony.
3. Insurance– go solar with a lease and the leasing company insures 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 leasing company monitors your system for the life of the lease/PPA.
When you purchase a system you likewise get keeping track of for the life of the system, using the very same tracking devices used by the leasing business.
5. Just sign an agreement and the leasing company does everything else.
When purchasing a system you also simply sign a contract and the solar service providers does everything else. Difference is the leasing companies contract is 17 pages (fine print) and the solar service provider’s contract is 2 pages.
6. A lease does not strike your individual credit. Doesn’t influence your debt to earnings ratio.
This may be the only real advantage of the lease however it comes at an awefully high cost. If this is one of your main issues there are financing alternatives for a purchase (PACE and HERO) that likewise don’t strike your individual credit or influence your debt to earnings ratio. And those programs enable practically any house owner to go solar regardless of their credit score.
Now for the six major drawbacks to a solar lease in San Diego CA 92135 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 two energy expenses not just one! In essence the renting company becomes a second utility. So, sign a solar lease and now you have 2 energy companies you have to pay each month.
3. Most leases or PPAs lug a yearly expense escalator, usually 2.9 %. So while you might be conserving cash today in a several years you will not be.
4. You will not be able to declare the 30 % federal tax credit and any suitable cash refunds. You likewise won’t have the ability to claim 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 settled you can take pleasure in complimentary electrical energy from the sun for 10– 15 years depending on the length of the solar loan.
[google-map location=”San Diego CA”]
6. Offering your home with a solar lease or PPA can be problematic. Solar leases require the brand-new owner to assume the lease and terms. If you check out any of the above you can probably see why an informed customer would not have an interest in presuming the responsibilities of your lease. This is especially true if the lease is 7 or more years old and the annual cost escalator in the lease has now raised the cost of electricity to equivalent or more than the cost of electrical energy from the energy.