Before you sign your name to a solar panel lease on your house in San Diego CA 92136 you have to understand exactly what you are truly getting into. If you’re in the business of offering solar leases possibly you should try Googling this, “benefits of solar lease” Read all the page one results and see exactly what your client’s are reading if they do even a percentage of research. You also may attempt Googling, “selling home with solar lease” and “solar lease vs. purchase”. Read exactly what your consumer’s will 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 numerous cancellations and why if you do not close the deal on the first visit you’ve got virtually no possibility of closing it later on. Why not change your strategy do exactly what’s right for the customer and get on board with a company that provides industry leading value (cost + quality + service).
The Solar Lease in San Diego CA 92136 or PPA Sales Pitch typically includes six main points. We went over each below.
1. Go Solar and Pay Nothing! Or no cash out of pocket.
Signing a 20 year agreement where you guarantee to pay X hundred dollars per month is barely paying nothing. If you add up all of those monthly payments throughout the term of 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. Many no cash down solar loans are offered. If you have the credit report to qualify for the lease you can use the bank’s money to fund your solar system with zero money down.
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2. No concerns. The leasing/PPA company in San Diego CA 92136 is responsible for all maintenance and repairs on the system.
The renting business will certainly not clean your photovoltaic panels which is about only upkeep used on a solar system. Solar systems are incredibly low upkeep with no moving parts and feature exceptionally long manufacturer’s warranties and performance warranties. 25 years with a microinverter based system, that’s longer than the leasing companies’ warranty. Many tier 1 solar devices makers are bigger and more solvent than the solar leasing company by numerous multiples. Those long service 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 renting company insures the system.
Purchase a system and the solar system is covered under your property owner’s policy for a just a couple dollars per month.
4. Tracking– the leasing business monitors your system for the life of the lease/PPA.
When you buy a system you also get keeping track of for the life of the system, utilizing the same tracking equipment used by the leasing company.
5. Simply sign a contract and the leasing business does everything else.
When acquiring a system you likewise simply sign an agreement and the solar service providers does everything else. Distinction is the leasing business contract is 17 pages (small print) and the solar specialist’s contract is 2 pages.
6. A lease doesn’t strike your individual credit. Does not influence your financial obligation to income ratio.
This might be the only true benefit of the lease but it comes at an awefully high price. If this is one of your main issues there are financing alternatives for a purchase (PACE and HERO) that also don’t hit your personal credit or affect your debt to income ratio. And those programs allow almost any property owner to go solar no matter their credit rating.
Now for the six primary drawbacks to a solar lease in San Diego CA 92136 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 investing in solar on your roofing! You’re just supplying them a guaranteed 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 utility business you have to pay each month.
3. A lot of leases or PPAs bring a yearly expense escalator, typically 2.9 %. So while you might be saving cash today in a numerous years you won’t be.
4. You won’t have the ability to claim the 30 % federal tax credit and any relevant cash refunds. You also won’t be able to claim 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 purchase a solar system once the solar loan is settled you can delight in free electricity from the sun for 10– 15 years depending upon the length of the solar loan.
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6. Selling your house with a solar lease or PPA can be bothersome. Solar leases use the new owner to presume the lease and terms. If you read any of the above you can probably see why an educated consumer would not have an interest in presuming the commitments of your lease. This is particularly real if the lease is 7 or more years of ages and the yearly cost escalator in the lease has actually now raised the expense of electricity to equal or more than the cost of electrical energy from the energy.